French co Alstom eyes rail projects with technology tie-up with BEML

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Bangalore: With railway industry in India started offering bumper business opportunities, France-based global rail major Alstom has decided to strengthen its presence in India through Defence PSU BEML.

Alstom will offer technology to BEML to produce components and finished products for rail industry, said VRS Natarajan, chairman and managing director of BEML. With Alstom's technology, BEML will manufacture products in medium high-speed and high-speed rail and double-decker coach segment. BEML-Alstom's tie-up announcement comes at a time when the railway ministry expressed its interest in its recent budget to include air-conditioned double-decker coaches for inter-city travel.

“Alstom is looking India as low cost manufacturing base. They would like to buy bogies and parts from us (BEML),” Natarajan said, adding, “We have signed an agreement with Alstom. They will support technology and we will produce products in our factory.”

The agreement will allow BEML and Alstom to work together on project-to-project basis in India. BEML will manufacture products based on Alstom's technology at its existing Bangalore facility and upcoming plant in Kerala, he added.

To start with, BEML-Alstom partnership is currently working to bag Rs 5,767 crore High Speed Rail Link (HSRL) project in Bangalore. The project that would be on Built-Own-Operate-Transfer (BOOT) basis was to connect Bangalore city and Bangalore International Airport by rail link. It may be noted that The Financial Express had first reported in its June 22 edition about 27 companies including railway infrastructure majors Alstom, Bombardier, Siemens and L&T expressing their interest in HSRL project.

Natarajan confirmed FE’s report, “We (BEML-Alstom) are going to quote for HSRL project. We are looking to form a consortium involving partners for finance, construct and operate the project. Currently we are in talks with various companies for this purpose,” he said and added that the BEML-Alstom in the consortium will supply rolling stock for the project. “Our consortium for any BOOT rail projects will have four partners for civil, operator, rolling stock and finance,” he said.

The government-owned Karnataka State Industrial Investment Development Corporation (KSIIDC) has asked the interested companies to submit Request for Qualification (RFAs) in August 2009 and tender for HSRL project is likely to be floated in the next three months. The HSRL will have medium-high speed train.

BEML has increased its turnover through rail and metro (R&M) business to Rs 475 crore in 2008-09 from Rs 272 crore a year ago.