In what will add sheen to the growth trajectory of the railways, the world is soon going to chug on made-in-India trains. Banking on the cost arbitrage, Bombardier Transportation India Ltd, part of Canada-based Bombardier Inc, is looking to manufacture indigenous trains for global markets in association with the Indian Railways. In a staged process, these trains will be made in the company?s upcoming manufacturing facility in Vadodara in a span of three to four years.

The first phase of this plan is the metro car project. Bombardier is also setting up an additional manufacturing facility in Savli, South Gujarat so as to supply Delhi Metro Rail Corporation Ltd an additional 84 metro cars before Commonwealth Games in Delhi. Over 1.40 lakh sq ft of property has been acquired and the facility will have an initial investment of 30-35 million euros. This manufacturing facility will eventually supply other projects in the south-east Asia region. The construction work on the site has already begun and is expected to be operational by the last quarter of 2008.

The company had received order in March for an additional 84 metro cars from the Delhi Metro Rail Corporation Ltd (DMRC). The contract is valued at approximately 87 million euros.

Vadodara is home to Bombardier?s propulsion systems manufacturing facility and software development centre for signalling and traction applications in India and for other Bombardier Transportation projects around the globe.

The site at Maneja is ISO 9001, ISO 14001 and OHSAS 18001 certified. In Hyderabad, Infotech Enterprises operates one of the most important engineering centers sourcing key global projects for Bombardier

Transportation.

Speaking to FE, Rajeev Jyoti, MD of Bombardier Transportation India, said, ?In the next three to four years, we hope to become a global supplier and we are gearing up to reach this stage in a phased manner. We hope to make India as the sourcing centre for the global markets when the supply and manufacturing processes fully mature in the country, he said adding that this is possible only with the increase in the local demand for greater hauling and speed. As part of this phased expansion, the company would initially push other global suppliers who are located in the country to set up factories in the country. The company also hopes to upgrade engineering skills and do high-end engineering services from its centre in Hyderabad.

The company has been shortlisted by the Indian Railways for a $8-billion contract to manufacture and supply locomotives. The other competitors include Germany?s Siemens AG and France?s Alstom SA for this contract.

It is a 15-year long-term contract, followed by a JV, with Indian Railways holding about 26% and the winner 74% as equity partners.

Currently, the company is in second stage where it is working on technical and other commercial issues with other key stakeholders for a transparent competitive bidding to fit in global requirements. Bombardier ransportation has supplied the Indian Railways with technologically advanced rail products, such as the WAP5 and WAG9 electric locomotives for passenger and freight applications and the Mumbai Traffic Management System. As part of its future plans, Bombardier is currently pursuing several other metro and monorail projects in cities across the country.