The Indian Railways are contemplating renegotiating the loan conditions with Japan for procuring electric locomotives for the Western Dedicated Freight Corridor (DFC). The Indian Railways’ plan to acquire 9000 high horse-power locomotives from Japan for hauling double stack containers on the Western DFC has made no progress for more than seven months on account of the price.
The company has found the price of Rs 500 million (6.5 million euros) per locomotive quoted by Kawasaki-led Japanese consortium too high and sought its reduction by almost half. Since the Japanese consortium has not reduced the price as desired by the Indian Railways, the tender has stalled.
Western DFC is entirely funded by a JICA loan, which stipulates that the Indian Railways have to procure the locomotives from Japan. The Indian company would like to renegotiate the loan condition so that it can go for international bidding.
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