The Make in India initiative was launched by Prime Minister in September 2014 as part of a wider set of nation-building initiatives. Devised to transform India into a global design and manufacturing hub, Make in India was a timely response to a critical situation: by 2013, the much-hyped emerging markets bubble had burst, and India’s growth rate had fallen to its lowest level in a decade.
- 75% of metro cars, 25% of critical equipment and sub-systems to be produced in the country.
- Several signalling equipment also to be procured indigenously.
- Metro companies to undertake in-house maintenance and develop local expertise.
- Rolling stock and signalling equipment norms standardized covering 90% of imports.
- Mandatory Tender Conditions to encourage Make in India brought into immediate effect.
- Eligibility criteria for suppliers also to be standardized in two weeks
Make In India | Introduction
With rapid expansion of metro rail projects in the country, Ministry of Urban Development has taken several far reaching decisions to promote Make in India campaign. These include stipulating certain mandatory conditions to be incorporated in Tender Documents of metro companies for procurement of metro cars and related critical equipment and sub-systems, procurement of only Made in India signalling equipment besides standardizing technical parameters for rolling stock (metro coaches) and signalling equipment.
Make In India | Details
The new mandatory Tender Conditions and standardized norms for a wide range of equipment, approved by the Ministry of Urban Development have been circulated to all the metro companies making them effective immediately.
Make In India | Significance
These initiatives will incentivize setting up manufacturing facilities in the country by increasing the volumes of procurement of rolling stock and all kinds of equipment by removing variations in the present technical norms for rolling stock and signalling equipment. This will in turn result in reduction of cost through economies of scale.
Make In India | Mandatory conditions
The Ministry has stipulated the following mandatory conditions to be incorporated in Tender Documents:
- Minimum 75% of the tendered quantity of metro cars shall be manufactured indigenously with progressive indigenization of content, for which the contractor may either establish independent manufacturing facility in India or partner with Indian manufacturers, if the procurement is more than 100 cars;
- To facilitate ease in maintenance through easy availability of spares beyond the warranty period, an identified list of critical equipment and sub-systems shall be included in the Tender Document for ensuring indigenous manufacturing of a minimum of 25% of such equipment, either by Original Equipment Manufacturers themselves by establishing a wholly owned subsidiary in India or through Indian manufacturers;
- Requirement of metro cars at State level shall be clubbed to enable applicability of local procurement norms; and
- To develop in-house expertise on long term basis, metro companies with large size fleet to undertake in-house maintenance.
Make In India | Additional measures
The Ministry has concluded the long pending standardisation of norms for rolling stock and signalling equipment applicable to over 90% of the present imports. Further, to promote indigenous manufacturing, the Ministry has stipulated procurement of 9 types of signalling equipment from within the country. Metro companies have also been directed to develop maximum possible local competence so that knowhow and technical support is available within the country. Indian companies have to be associated with production of a wide range of signalling and train control project equipment.