Pre Budeget recommendations of Mr Rajeev Jyoti, President & MD, Bombardier Transportation, India

Hi,

 

Please find enclosed the pre budget expectations of Mr. Rajeev Jyoti, President & Managing Director, Bombardier Transportation India and Chairman of Confederation of Indian Industry (CII) Railway Equipment Division for your kind perusal.

 

Thank you,

 

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Surbhi Khatry
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Mr. Rajeev Jyoti, President & Managing Director, Bombardier Transportation India and Chairman of Confederation of Indian Industry (CII) Railway Equipment Division

 

Pre – Railway Budget Recommendations 2009 -10

 

·         Public Private Partnerships (PPP) initiatives

 

The Railways came out with certain projects to set up factories to manufacture various rolling stocks, components and coaches. All of the projects were withdrawn from the PPP after advanced discussions. A mandate should be in place to govern any policy. There needs to be a clear and long term guideline so that companies can plan accordingly.

 

·         Electric Locomotives

 

There is need for setting up of factory for supply of 1000 electric locomotives either as Joint Venture or with Transfer of Technology. If Joint Venture route is followed then the terms and conditions should be reviewed to mitigate the issues of the bidders that caused no bid.  Similarly, project for passenger coaches including high speed double decker passenger coaches is recommended for inclusion in the budget.

 

·         Dedicated freight corridor

 

Eastern and western corridor should be put on fast track before bidders start to loose interest and focus elsewhere. The consultancy study for other Dedicated Freight Corridor projects on golden quadrangle need to be pushed. 

 

·         Electric Motor Unit (EMU)

 

Design, manufacture and supply of AC Electric Motor Units for suburban application should be offered to private companies to ease pressure on Integral Coach Factory (ICF).

 

·         Consultancy study for high speed trains

 

For high speed passenger corridors, trains like Train-a-Grande Vitesse, Shinkanzen (bullet), etc could be put on fast track. A target is required to be set up for its implementation. The government could set up a Special Purpose Vehicle for the same on the lines of Dedicated Freight Corridor Corporation India Limited.

 

·         Incorporation of Price Variation Clause in Tenders/ Purchase

 

Orders. In recent past the input prices changed drastically affecting the viability of many businesses. With Price Variation Clause becoming a norm, it will be market driven without affecting any party adversely.

 

·         All new technologies, new rolling stock, and key components like

 

Propulsion equipment within rolling stock should be forced to have at least 40 - 50% of content (in terms of production value add) that is locally manufactured in India from day one of its regular usage on Indian Railways. This has been adopted in the defense sector with very good results by reducing budget spending and also better control over continued availability of the components and spares. Similar strategies have been used by railroads / metros in US and China to good effect. 

 

Depending on technology, either multinational companies will setup production facility in India, form a Joint venture in India or let local companies develop the product, with net effect of increased employment in railway sector companies.

 

·         Wagon Investment Scheme (WIS)

 

The Public Private Partnership initiative of the Indian Rail brought in approximately Rs. 3000 Crores investment in the wagon industry by the private sectors. However, due to some operational reasons the WIS was stopped. The operational reasons were not insurmountable and can be resolved without having to shelve the scheme itself. This could bring in thousands of Crores of private investment into Railways.

 

·         Container Operator Scheme

 

While 14 licenses were given in advance to Container Corporation of India for owning and operating container trains, the experience has been that most of the operators were losing heavily in this business. The only way Container operators can be made viable is if the Railways extend their support to the private operators and treat them in a cooperative and non competitive mode. Of these one of the options can be formulation of independent regulators in the same fashion as the telecom regulator which can ensure a level playing field. These will not only help in ensuring the success of the PPP scheme but will also bring in a lot of traffic from the road to rail.

 

·         Reinitiating the setting up of the loco and coach factories

 

Reinitiating the setting up of the loco and coach factories in India with modern technology are called for. These projects were started but could not proceed for a host of reasons and need to be given another policy thrust.

 

·         Modernization of Railway Stations

 

The up-gradation and modernization of railway stations should be taken up and the air space i.e. vertical space should be used for building commercial complexes.