German engineering conglomerate Siemens may choose not to bid for public-private partnership projects of Indian Railways if the latter continues to delay calling financial bids. Siemens is one of the shortlisted bidders for two rolling stock projects ? an electric locomotive project at Madhepura in Bihar and a coach factory at Kanchrapara in West Bengal.
?Organisations have limited resources and cannot keep funds tied up for every project. We have to set our priorities as an organisation,? company?s vice-president and head (mobility division) Tilakraj Seth told FE in an interview.
The Railways had shortlisted four firms ? Siemens, GE, Bombardier and Alstom ? for the R1,300-crore Madhepura project in June last year but have not called financial bids so far, saying they need to have a relook at documents on public-private partnership projects before going ahead. Siemens was also among eight firms shortlisted for setting up a coach factory at Kanchrapara in August 2010, but financial bidding for this project has been postponed indefinitely.
The national transporter is looking at private investments to reduce the burden on own financial resources while increasing the supply of rolling stock to meet the growing needs of the economy. It wants to acquire 4,281 electric locomotives and 50,880 passenger coaches in 10 years to 2020. It currently manufactures up to 200 electric locomotives a year at Chittaranjan Loco Works in West Bengal.
The Railways have shifted the internal deadline for calling financial bids for the Madhepura project eight times and are currently working towards seeking bids on July 15. ?We have an intimation that bids can be called on July 15. I wish it could have been faster,? Seth said. Before the bidding, Railways has called a meeting with shortlisted bidders to discuss the changes they want in the project documents. The entity is considering a reduction in the lease period of land and an alteration the price variation clause. ?We will have a clear picture at a meeting between the bidders and Railways on June 25,? he added.
When asked whether Siemens had set any deadline after which it would rethink on participating in the projects, Seth said, ?As of now we are interested in the project and hopeful that the Railways award the project quickly. We are pursuing the project in right earnest. We have not set any internal deadline from our side. It is for the Railways to award the project in time?.