Make in India and Indian Railways

In a written reply, The Indian Railways have clarified that Railways’ procurement is compliant with Public Procurement Policy (Preference to Make in India) Order, 2017. Approximately more than 97% of the Railways requirement is met from indigenous sources. The following areas have been identified to reduce import further through Make in India :-

1. Manufacturing of new modern rolling stock such as High Horsepower Locomotive, Trainsets, Light Weight Coaches, Special Spares and Components of Rolling Stock.
2. Signalling and Telecom equipment.

In addition several items under the categories of Track, Civil, Electrical and Signal & Telecommunication and Rolling Stock have also been identified for ‘Make In India’ in the course of implementation of Mumbai-Ahmedabad High Speed Rail (MAHSR) Project. While many projects have been undertaken by private sector under Make In India, following projects have been undertaken with investment of Government or on the basis of assured off take by Government :-

1. High Horsepower Electric Locomotive factory at Madhepura.
2. High Horsepower Diesel Locomotive factory at Marhowra.
3. Forged wheel factory at Rae Bareli.

Total investment made so far for these three factories is approximately 1500 crore. Past experience has shown that indigenisation reduces the cost considerably compared to import. However, precise saving in manufacturing cost due to implementation of Make in India initiative cannot be quantified at present.