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DNA Exclusive: Maharashtra Government relaxes bid condition for local rolling stock for Metro

Development to help MMRDA strike a better deal with ADB, which was against the condition

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Metro work is currently underway in various parts of the city
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In a major policy shift, the state government has given its approval to Mumbai Metropolitan Region Development Authority (MMRDA) to do away with the bid condition that 75 per cent of the total rolling stock to be procured for metro rail projects be produced locally.

This is expected to promote competition and also allow existing players including Siemens, Alstom and Bombardier to participate in the bidding process. Besides, MMRDA will also negotiate with the bidding companies to start production of rolling stock in Maharashtra.

MMRDA at its board meeting held last week gave its consent to the proposal.

An official from the state urban development department told DNA, “In all 378 rolling stock (metro compartments) worth Rs 3,900 crore are required for the 18.6 km Dahisar (east)-DN Nagar metro corridor, 23.6 km DN Nagar-Mandale metro corridor and 16.5 km Andheri (east)-Dahisar (east) metro corridor. The Asian Development Bank (ABD) has evinced to provide loan to MMRDA for  the procurement of rolling stock but objected to the condition with regard to local procurement.The relaxation in bid condition will now render MMRDA more muscle to strike a better deal with ADB.”

The official informed that the decision was taken as per the order issued by the Department of Industrial Promotion and Policy (DIPP) last year which had delegated powers to ministries and autonomous bodies to grant exemption and to reduce minimum local procurement.

The official added, “MMRDA accordingly decided to reduce the minimum local procurement below the prescribed level of 75 per cent and exempt any particular item or procuring or supplying entities or class or classes of items or procuring or supplying entities.”

He reiterated that the relaxation of bid condition will also help MMRDA to procure spare parts of rolling stock at competitive rates.

These developments are expected to put the several Metro projects in the city on a fast track to completion.

WHAT IT MEANS

  • State government gave its approval to MMRDA to do away with the bid condition that 75 per cent of the total rolling stock to be procured for metro rail projects be produced locally.
     
  • This is expected to promote competition and allow existing players like Siemens, Alstom and Bombardier to participate in the bidding process.
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