BEML to rake in big money from proposed metro projects

BEML to rake in big money from proposed metro projects

The Hindu

Defence PSU to supply rolling stock in four cities

# BEML signs MoU with South Korean firm for transfer of technology for building metro coaches
# To set up R&D centre with Rs. 130 crores
# Requirement of metro coaches to touch 1,000 units in five years
# Bangalore Metro will require 116 coaches for the first phase
# Each metro coach to cost R. 5 crores

BANGALORE: The Government's plan to build metro projects to decongest cities will bring mega business to the Bangalore-based Bharat Earth Movers Limited (BEML) from the supply of rolling stock.

The Defence public sector undertaking reckons that over the next five years, the requirement of metro coaches in Delhi, Bangalore, Mumbai and Andhra Pradesh will touch 1,000 units, translating into a business of over Rs. 5,000 crores.

BEML is equipping itself to meet this task by creating a research and development centre of excellence in Bangalore with an investment of Rs. 130 crores. "The proposal will have to be cleared by the Union Cabinet," a BEML official told The Hindu .

BEML signed an in-principle memorandum of understanding (MoU) in 2003 with South Korean firm ROTEM for transfer of technology for building metro coaches. ROTEM supplies coaches to the metro rail project in Delhi as part of a consortium selected by the Delhi Metro Rail Corporation (DMRC). ROTEM has, in turn, selected BEML as its local partner for building rolling stock for metro projects.

While the initial set of 60 coaches for the first phase of Delhi Metro was imported from South Korea in Completely Built Units (CBU) form, DMRC wanted BEML to assimilate the metro coach building technology, assemble either from Semi-Built Units (SBU) or Completely Knocked Down Units (CKD) form or manufacture another 180 units within the country. Out of this order, BEML has completed 130 units at its facility in Bangalore while another 50 units are slated for despatch before December this year, the official said.

For the second phase of Delhi Metro project, DMRC requires 312 units and has asked BEML to start manufacturing the coaches in the country through indigenisation from ROTEM technology. "The technology tie-up for the work in under way. Once we receive the technology from ROTEM, we will be able to start with indigenisation of about 30 per cent initially. Over the years, we will attain 60 to 70 per cent of indigenisation with the exception of certain vital line propulsion units and electronic and electrical items which may have to be imported in perpetuity," the official said.

The Bangalore Mass Rapid Transit Ltd (BMRTL), which will require 116 coaches for the first phase of Bangalore Metro, is also keen on procuring the rolling stock from BEML apart from awarding the contract for the maintenance of coaches to it.

At a ball-park rate of Rs. 5 crores a coach, BEML is likely to rake in about Rs. 1,560 crores for supply of 312 units to DMRC, Rs. 580 crores for supply of 116 units to BMRTL and another Rs,.285 crores for supplying 57 coaches to the Mumbai Metropolitan Rail Development Authority (MMRDA). Besides, the proposed metro project in Andhra Pradesh is also expected to source its rolling stock requirements from BEML.