Govt. mandates local procurement in Metro Rail projects to boost Make In India

New Delhi, Apr 24 (KNN) In a bid to boost the Make in India project, the Ministry of Urban Development recently took decisions along the line. One of the key decision being, making it mandatory for the Metro companies to procure 75 per cent of metro rail cars and 25 per cent of its critical equipment from local manufacturers.

As per the new tender document, minimum 75 per cent of the tendered quantity of metro cars should be manufactured indigenously by independent manufacturing facility in India or in partnership with Indian manufacturers provided the procurement is more than 100 cars.

The Ministry of Urban Development while announcing the new set of measures said that the initiatives are expected to incentivise setting up of manufacturing facilities in the country by increasing the volumes of procurement. This will help reduction of cost through economies of scale 

As of now 1,912 metro coaches are in operation and there is a fresh requirement of over 1,600 coaches in the coming three years.

The new mandatory tender conditions have been approved by M.Venkaiah Naidu, Minister of Urban Development and have been circulated to all metro companies last week, asking them to bring it into immediate effect.

Until now there were no restrictions on procurement because of which most of the equipment and coaches were being imported by the companies. (KNN/ DA)