ACKNOWLEDGEMENT - National Academy of Indian...

A

PROJECT REPORT ON

MAKE IN INDIABy

AVNISH RANA

DHARMENDER KR MEENA

NAVEEN CHANDRA JOSHI

VIKAS KUMAR

IRSS (P) 2013

Under the Guidance of

Shri Atul Gupta Sir (SPMM) and

Shri Rakesh Rajpurohit sir (PIM)

NATIONAL ACADEMY OF INDIAN RAILWAYS

VADODARA, GUJARAT, 390004

1

ACKNOWLEDGEMENT

Apart from the efforts of a team, the success of any project depends largely on

the encouragement and guidelines of many others. We take this opportunity to

express our gratitude to the people who have been instrumental in the

successful completion of major project on “Make In India”. We are extremely

grateful to our Course Director, Shri Rakesh Rajpurohit for his valuable

guidance support and constant supervision as well as for providing necessary

information regarding the project.

We would like to express our sincere gratitude to Shri Atul Gupta , Ex Senior

professor material management for his valuable guidance.

We would like to acknowledge the efforts and co-operation of all the officers

and staff of Diesel Locomotives Works, Varanasi for providing valuable

information and necessary data for analysis and fruitful completion of the

project.

We extend a sincere gratitude to all the faculty of National Academy of Indian

Railways, Vadodara for their constant support and inspiration throughout the

endeavor.

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Contents

List of Tables

Introduction

What is 'Make in India' program?

Policies under 'Make in India' initiative:

25 major 'Make in India' focus areas

Indian Railways Gets 100% FDI In 17 Key Areas

Changing Perception Towards INDIA

About Diesel Locomotive works

Why DLW is selected for DATA Collection ?

Compilation of Data

Calculations

Problems Observed

Conclusion

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List of Tables

Table1 :Details of procurement in IR in 2013-14

Table 2 : List of high value items whose indigenisation is required

Table 3: Items for which no/one part-I indigenous source is available

Table 4: List of Items having sleeping vendors

Table 5: List of items for which developmental tender is suggested

Table 6: List of items for which developmental tender is suggested but not able to find the potential vendors

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Introduction

Indian Railways operates both long distance and suburban rail systems on a multi-gauge network (broad, metre and narrow gauges) to carry 8500 million passengers. To maintain the operation in smooth flow, railways owns locomotive and coach production facilities at several places in India and for that Railways have to procure more than 1.3 lakh items. The procurement of these huge numbers of items is done either from indigenous source or by import. The total value of procurement done by railways is approximately 42,447 crores in 2013-14 and the total import comes out to be nearly 5%.

Sr. No Details of procurement in 2013-14 Value(in crores)1 Stores for operation, repairs and maintenance 9,3342 Stores for construction 1,1713 Fuel 14,6664 Stores for manufacture of Rolling Stock and

purchase of Complete units17,276

Total 42,447

Table1 :Details of procurement in IR in 2013-14

But in case of DLW, total procurement is about 4500 crores which is more than 10% of total procurement and import percentage of DLW is very much higher as compared to total and that’s we collected our data from DLW to know the reasons of such high percentage of import.

In the today’s world railways is facing a lot of competition from roadways and waterways so in order to have upper hand, we need to provide cheap and better service for freight and passengers and we can further lower down our operating ratio by procuring material from indigenous sources because procurement from indigenous sources is about 25-30% cheaper.

But now the question is why are we not procuring material from indigenous sources???

we found the answer of above question during the data collection and the answer is- there exists a lot of items for which either we do not have or have only one or two indigenous sources. Moreover if for some items there exists some indigenous vendor either they are not participating or they are not able to make the items as per the specified tolerance limits hence it became obligatory for us to buy from foreign sources.

To suggest the solution of the above said problem, what we did in our major project is as following:

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We made a list of high value items for which developmental tender is required (mainly to develop indigenous source) and for this we have suggested a list of some potential vendors who can supply the listed items

To promote the indigenisation of high value imported items, we have done a conversation with the sleeping vendors and other potential vendors about their concerns. And what we feel is that there is a possibility of indigenisation of high value imported items but we need to sort out some concerns of vendors so that they can set up their firms and there is a guarantee of profit for them for few years.

What is 'Make in India' program?

The 'Make in India' program is an initiative launched to encourage companies to increase manufacturing in India. This not only includes attracting overseas companies to set up their shop in India, but also encouraging domestic companies to increase production within the country.

'Make in India' aims at increasing the GDP and tax revenues in the country, by producing products that meet high quality standards, and minimising the impact on the environment.

Fostering innovation, protecting intellectual property, and enhancing skill development are the other aims of the program

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Policies under 'Make in India' initiative:There are 4 major policies under the 'Make in India' program:

1. New Initiatives: This initiative is to improve the ease of doing business in India, which includes increasing the speed with which protocols are met with, and increasing transparency.

Here's what the government has already rolled out

-- Environment clearances can be sought online.

-- All income tax returns can be filed online.

-- Validity of industrial licence is extended to three years.

-- Paper registers are replaced by electronic registers by businessmen.

-- Approval of the head of the department is necessary to undertake an inspection.

2. Foreign Direct Investment (FDI):

The government has allowed 100% FDI in all the sectors except Space(74%), Defence (49%) and News Media (26%).

FDI restrictions in tea plantation has been removed, while the FDI limit in defence sector has been raised from the earlier 26% to 49% currently.

3. Intellectual Property Facts:

The government has decided to improve and protect the intellectual property rights of innovators and creators by upgrading infrastructure, and using state-of-the-art technology.

The main aim of intellectual property rights (IPR) is to establish a vibrant intellectual property regime in the country, according to the website.

These are the various types of IPR:

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-- Patent: A patent is granted to a new product in the industry.

-- Design: It refers to the shape, configuration, pattern, colour of the article.

-- Trade mark: A design, label, heading, sign, word, letter, number, emblem, picture, which is a representation of the goods or service.

-- Geographical Indications: According to the website, it is the indication that identifies the region or the country where the goods are manufactured.

-- Copyright: A right given to creators of literary, dramatic, musical and artistic works.

--Plant variety Protection: Protection granted for plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.

--Semiconductor Integrated Circuits Layout-Design: The aim of the Semiconductor Integrated Circuits Layout-Design Act 2000 is to provide protection of Intellectual Property Right (IPR) in the area of Semiconductor.

4. National manufacturing:

Here the vision is,

- to increase manufacturing sector growth to 12-14% per annum over the medium term.

- to increase the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022.

- to create 100 million additional jobs by 2022 in manufacturing sector.

- to create appropriate skill sets among rural migrants and the urban poor for inclusive growth.

- to increase the domestic value addition and technological depth in manufacturing.

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- to enhance the global competitiveness of the Indian manufacturing sector.

- to ensure sustainability of growth, particularly with regard to environment.

25 major 'Make in India' focus areas:

Automobiles Automobile Components Aviation Biotechnology Chemicals Construction Defence manufacturing Electrical Machinery Electronic systems Food Processing IT and BPM Leather Media and Entertainment Mining Oil and Gas Pharmaceuticals Ports and Shipping

Railways Renewable Energy Roads and Highways Space Textiles and Garments Thermal Power Tourism and Hospitality Wellness

Government has allowed 100% FDI in all sectors except Space(74%), Defence (49%) and News Media (26%)

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Indian Railways Gets 100% FDI In 17 Key Areas

Indian Railways, which is facing a severe cash crunch to the tune of Rs 30,000 crore every year, received a major financial boost as 100% Foreign Direct Investment (FDI) is now allowed for developing infrastructure and improving safety features. The Railway Board and a Cabinet Panel has identified 17 key areas where this FDI can be used.

Ever since its origin, Indian Railways had always been shut off from receiving any kind of FDI, considering security risks involved. But recently cabinet cleared FDI provision in the Indian Railways, and the important areas were finally identified and notified.

It is expected that these new guidelines can attract upto Rs 90,000 crore FDI into Indian Railways..

17 key areas of Indian Railways where 100% FDI will be allowed

1. Installation and maintenance of Bio-toilets in passenger coaches2. Technological solutions for manned and unmanned level crossings

(Construction and maintenance of ROB/RUB /Limited Height Subway)3. Technological solutions to improve safety and reduce accidents

(Installation and maintenance of Asset failure detection systems (Track/ OHE/ Rolling Stock/Signaling etc.)

4. High Speed Train Projects: Projects involving those trains which will run above 250 Km/hr speed; and will have no connection or link with any

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existing railway line or route. The designer will have complete freedom to exercise his creativity and ideas; Government will also chip in with resources and money.)

5. Mechanized laundry (land will be leased by Ministry of Railways at Re 1 / annum)

6. Producing non-conventional energy from sources such as solar, tidal, wind etc with open market tender being offered.

7. Rolling stock procurement8. Concessioning of standalone passenger corridors (branch lines, hill railways

etc). (renovation of these lines, optimizing them for better commercial usage)

9. Testing facilities and world class laboratories for experimenting new technology

10.Setting up Railway Technical Training Institutes11.Construction of world class passenger terminals and

renovation/maintenance of existing stations12.Creation of Freight terminals/ Logistics Parks in strategically important

locations13.Signaling system – Construction of new facilities to develop advanced

systems and renovating/maintaining existing systems14.Railway Electrification15.Rolling stock including train sets and locomotives or coach manufacturing

and maintenance facilities.16.Dedicated freight lines on a Joint Venture and/or PPP model, with clear

revenue sharing guidelines (Private Trains on certain lines will also be allowed from now on..)

17.Suburban corridor projects through PPP: All new suburban corridor projects are permissible when launched through PPP route by MoR. The developer can construct, maintain and operate the corridor within the concession period.

The Railway Board has outlined a series of ‘terms and conditions’ which apply in this unique 100% FDI route, such as in those projects which are situated near border areas, FDI beyond 49% will be brought before the cabinet panel for due approval; safety clearance and audit are required for projects involving public carriage of passenger and more.

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Changing Perception Towards INDIA

India is well known for its services exports, but many doubt its ability to export manufactures and that is the perception which our Prime Minister Narendra Modi plans to change and for this Modi Ji rolled out a red carpet to industrialists, both domestic and international, inviting them to make India a manufacturing hub that will help boost jobs and growth.

We should manufacture goods in such a way that they carry zero defects, so that our exported goods are never returned to us. We should manufacture goods with zero defect that they should not have a negative impact on the environment.

All this will auger well for the economy and the markets as it will help in boosting growth, in job creation and revival of investment cycle in Asia's third largest economy

About Diesel Locomotive works

The Diesel Locomotive Works (DLW) in Varanasi, India, is a production unit owned by Indian Railways, that manufactures diesel-electric locomotives and its spare parts. It is the largest diesel-electric locomotive manufacturer in India.

DLW locomotives have power outputs ranging from 2,600 horsepower to 5,500 horsepower. Currently DLW is producing EMD GT46MAC and EMD GT46PAC locomotives under license from Electro-Motive Diesels (formerly GM-EMD) for Indian Railways. Some of its EMD locomotive products are WDP4,WDP4D, WDG4D,WDG5 and others .

Besides the Indian Railways, it regularly exports diesel-electric locomotives and has supplied locomotives to other countries such as Sri Lanka, Malaysia, Bangladesh, Mali, Senegal, Sudan, Tanzania, Angola, and Vietnam and also to a few users within India, such as ports, large power and steel plants and private railways.

The Target s increased from 319 in 2015-16 to 332 in 2016-17. The cost of one diesel locomotive is 13 to 14 crores.

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The total procurement of materials in DLW is of value 4500 crores. The procurement of around 3500 crore value is done through Global Tenders. Total import is of value around 1030 crores. Therefore the percentage of imported items is around 23% of total purchase.

Total number of imported items are 276 which do not have any indigenous source where as some items have only one indigenous registered source and they are about 300 in number. We have tried to select mainly high value items having AAC more than 50 lakhs. Apart from these we have also selected some items which have Indian registered firms but they are not participating in tendering process so they are sleeping vendors.

Therefore to reduce import, development tenders are required so that there is indigenisation of these items and hence we can save much cost and can generate more employment in our country.

Why DLW is selected for DATA Collection ??

The total value of procurement in railways is approximately 42,447 crores in 2013-14 and the total import comes out to be nearly 5%.

But in case of DLW, total procurement is about 4500 crores which is more than 10% of total procurement in Indian Railways and import is about 1030 crores that means import percentage is more than 20 percent which is very much high as compared to total import that’s why we collected our data from DLW to know the reasons of such high percentage of import.

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Criteria for selecting items whose indigenisation is required

As per discussion with many officers we came to know that DLW is procuring about 5000 Items(that costs 4500 crores to railways ) per year and from them about 550 items (about 1030 crores) are procured from foreign sources.

From these 550 items we have selected 33 such times which we are suggesting to indigenise. From these 33 items we have 11 items for which we have suggested some potential vendors. The selection of 33 items is done on the basis of following criteria:

Based on A-B-C analysis: High value items are selected. Items for which no/one part-I indigenous source is available. Items for which vendors are registered but they are not actively

participating.(Sleeping vendors)

Criteria 1.High value items (Based on ABC Analysis )

In materials management, the ABC analysis (or Selective Inventory Control) is an inventory categorization technique. ABC analysis divides an inventory into three categories- "A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records.

The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost. We selected a list of “A” Category items whose AAC value is more than 100 lacs.

High value itemsSN Pl No. Description AAC Value

(Lakhs)1 16080490 Support Assembly 144.282 16080385 TURB WHL-IMPLR BAL ASM 57143 16040028 CYL Head Stud ASM 22734 16030382 Frame & Latch ASSLY RB 774

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5 16030618 RING SET 3106 16050253 INLET TUBE ASM 1907 16060222 Mototr Outline 3598 16030473 IDLER STUBSHAFT ASM 3429 16241186 NEW SUPER STACK

INJECTOR2263

10 16060118 Lube Oil Stainer Asm 121111 16150193 UPPER SLEEVE CON Rod 74412 19110017 Cylinder Liner Stud Asm 880713 16080385 Turbo Wheel Impeller

Balance ASM5737

14 16120073 Piston Machined 124915 18360191 PLUG CRIC 32A72S 11616 18520888 1. Conduit & Cable Asm 19117 17455674 CCB 2.0 82718 17455017 Radiator Asm Kit 488819 18020010 Traction Alternator 2942520 16210207 Set Gear Plant 130

Table 2 : List of high value items whose indigenisation is required

Criteria 2: Items for which no/one part-I indigenous source is available.

A list of 30 items is prepared from those items which either have no or have single indigenous source.

Items with No/one indigenisation source

SN Pl No. Description Part-1 source Part-ll Source

1 16140989

GearTurbo Drive

1.EMD/USA 2.Milwaukee/USA

Nil

2 16080385

TURB WHL-IMPLR BAL ASM

1.EMD/USA 2.Walbar inc./USA 3.transportation parts llc/USA

Nil

3 16040028

CYL Head Stud ASM

1.EMD/USA Nil

15

4 16030382

Frame & Latch ASSLY RB

1.EMD/USA 2.Compo Steel Products /USA

Tisco Jamshedpur

5 16030618

RING SET 1. EMD/USA Nil

6 16050253

INLET TUBE ASM

1. EMD/USA 2. Harbor manufacturing inf. /USA

Nil

7 16060222

Mototr Outline

1. EMD/USA 2. Dayton Phoenix group inc. /USA

Nil

8 16030473

IDLER STUBSHAFT ASM

1. EMD/USA 2. ACME Industries inc. /USA

Nil

9 16241186

NEW SUPER STACK INJECTOR

1. Interstate llc-4901 Lakeside avenue cleveland OHIO

Nil

10 16060118

Lube Oil Stainer Asm

1. EMD/USA Nil

11 16150193

UPPER SLEEVE CON Rod

1. MIBA Bearings/USA 2. EMD/USA

Nil

12 16080385

Turbo Wheel Impeller Balance ASM

1. EMD/USA 2.Walbar inc./USA 3. GE Transportaion Parts LLC/USA

Nil

13 16120073

Piston Machined

1. EMD/USA Nil

14 18360191

PLUG CRIC 32A72S

1. EMD/USA 2. ITTCorporation /Hongkong

Nil

15 17455674

CCB 2.0 1. Knorr Bremse Nil

16 16210207

Set Gear Plant

1. EMD/USA 2.Orlinkon Fairfield/usa

Nil

17 18360151

CRIC CONN 8.33 PLUG

1.EMD/USA 2.ITT CORPORATION/Hongkong

Nil

18 18360083

PLUG 3 POLE MALE


Nil

19 161321053

Coupling 1 EMD/USA 2. KK industries Pune

Nil

20 1612174 Seal 1.EMD /USA Nil

16

0 Compressor Bearing

2.ABB/BRC

21 16050196

Manifold Asm Fuel Line LB&Rb

1.EMD/USA 2.NTF/USA 3.Imperial Faridabad

Automax Gurgaon

22 16080490

Support Assembly

1.EMD/USA 2.ABB/Vadodara

Nil

23 16060453

Oil Seprator Asm

1.EMD /USA 2.Parker Hannfin ,India

Nil

24 19110017

Cylinder Liner Stud Asm

Nil 1. EMD/USA 2.GE Transportation Parts LLC/USA

25 18520888

1. Conduit & Cable Asm

1. EMD/USA 2.Kay Sons Electricals Pvt.Ltd./Varanasi

Nil

26 17455017

Radiator Asm Kit

1. EMD/USA 2. Banco Products /BRC

Nil

27 18020010

Traction Alternator

1. EMD/USA 2. Bhel Bhopal

Nil

27 16080660

Seal Impeller 1. EMD /USA 2. ABB/BRC

Nil

28 16050320

Shaft Assembly (LB& RB)

1. EMD/USA @. Genral MFg. /USA 3.lohia /Kanpur

Nil

29 16240236

Button Valve Bridge

1. EMD/USA 2.Infinite Inc./Usa 3.trident Kanpur

Nil

30 16141714

Rocker Arm Injector Forging

1.EMD/USA 2. DE Calb/USA 3. Him Tekno /Solan

Nil

Table 3: Items for which no/one part-I indigenous source is available

Criteria 3:Items for which registered vendors are not actively participating.(Sleeping vendors)

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It is also observed that there exists some items where we have registered vendors but they are not participating. We selected such items which have sleeping vendors and the list of such items are as under

Items with sleeping vendors

SN Pl No. Description Part-l Source Sleeping vendors

1 19012597

Bolt 1.LPS Bossard/Rohtak 2.Sundram/Chennei

Sundram/Chennei

2 16050484

Fuel strainer Assm

1.EMD/USA

2.Parker Hannifin/Bangalore 3.Automax / Gurgaon

Automax/Gurgoan

3 16060453

Oil Separator

1.EMd/USA 2.Patra&Chandra/Howrah 3.ParkerHannifin/Mumbai

Parker Hannifin/Mumbai

4 18120787

Power Supply55 AC 275 DC

1.EMD/USA

2.Seimens Ltd/Gurgaon 3.Schafer/Germany 4.Bross/Denmark

1.Seimens Ltd/Gurgaon 2.Schafer/Germany 3.Bross/Denmark

5 18140038

Contractor 325 amps

1.Crompton/Bhopal 2.EMD/USA 3.Seimens Ltd/Gurgaon 4.Medha/Hyderabad 5.Cuttler Hammer/DR

1.Crompton/Bhopal 2.Cuttler Hammer/DR

6 18140051

Contractor AC- 3Pole 150

1.Crompton/Bhopal 2.EMD/USA 3.Seimens Ltd/Gurgaon 4.Medha/Hyderabad 5.Cuttler Hammer/DR

1.Crompton/Bhopal 2.Cuttler Hammer/DR

7 1910042 Stud 5/8-11 1EMD/USA

2Pooja Forge/Faridabad

Pooja Forge/Faridabad

8 1911005 Stud 1-8 1.EMD/USA Pooja

18

42.Pooja Forge/Faridabad

Forge/Faridabad

9 19330133

Pin-1/8" EMD/USA EMD/USA

10 17454633

Fuel Pump 1.EMD/USA 2.Paragon Product/USA

Paragon Product/USA

Table 4: List of Items having sleeping vendors

Compilation of Data

On the basis of above said criteria we have made 3 tables (high value items, items which don’t have indigenous vendors and items have sleeping vendors )

And on compilation we have a list of 33 items for which developmental tenders are required.

List of items for which developmental tender is suggested

SN

Pl No. Description

Part-1 source Part-ll Source

AAC Value(Lakhs)

Remarks Potential vendor

1 161321053


Nil 73.75 Dev Tender Req

No eligible firms found in India

2 16121740

Seal Compressor Bearing

1.EMD /USA 2.ABB/BRC

Nil 71.56 As ABB/BRC is not participating from past few years so Dev Tender Req,


19

3 16050196


1.EMD/USA 2.NTF/USA 3.Imperial faridabad

Automax Gurgaon

69.93 Dev Tender Req. M/S imperial is single indigenous part-l firm not participating in tenders and there are quality issues in their supplies. M/S Automax Performance is Poor.


4 16050216

68.4 No eligible firms found in India

5 16080490

Support Assembly

1.EMD/USA 2.ABB/Vadodra



6 16140989

GearTurbo Drive




7 16060453

Oil Seprator Asm


Nil 55.43 Dev Tender Req .M/S Parker Hannfin,India is part-1 Souce but not participating in tenders


8 16080385



Nil 5714 Dev Tender Req. No registered indigenised firm

M/S Bharat Forge is Interested

9 16040028

CYL Head Stud ASM

1.EMD/USA Nil 2273 Dev Tender Req.

M/s Lohia Corp. Is Interested

10 16030382



Tisco Jamsehedpur

774 TISCo had Never Supplied the item .Dev order Req.

M/s Apex Texmaco is interested

11 160306 RING 1. EMD/USA Nil 310 Dev Tender M/s Indo

20

18 SET Req. German/Gujrat is interested

12 16050253

INLET TUBE ASM


Nil 190 Dev Tender Req

JBM Faridabad is interested

13 16060222

Mototr Outline

1. EMD/USA 2. Dayton Phoenix groupinc. /USA

Nil 359 Dev tender Req

M/S Thyran Thane is interested

14 16030473

IDLER STUBSHAFT ASM




15 16241186




M/S BOSCh/Bangaloreis interested

16 16060118


1. EMD/USA Nil 1211 Dev Tender Req


17 16150193





18 19110017


Nil 1. EMD/USA 2.GE Transportation Parts LLC/USA

8807 Dev tender Req

1.M/S Lohia Kanpur 2. M/s Transloco /CBE interested

19 16080385


1. EMD/USA 2.Walbar inc./USA 3. GE Transportaion Parts LLC/USA


1.M/s Bharat Forge interested

20 16120073

Piston Machined

1. EMD/USA Nil 1249 Dev tender Req

1.M/s FMGIl /GGN Till Now FMGIll

21

Outsourced the casting from china and machined in house ,Now FMGIl is interested to develop in house casting If Long term contracts has been placed on the firm. 2.CooperSatara is also interested

21 18360191

PLUG CRIC 32A72S

1. EMD/USA 2. ITTCorporation /hongkong

Nil 116 Dev tender req.


22 18520888


1. EMD/USA 2.Kay Sons Electricals Pvt.Ltd./varanasi

Nil 191 Dev Tender Req. Single indigenous source .M/s kay sons only Quotes against Tenders resulting into single offer situation


23 17455674

CCB 2.0 1. Knorr Bremse Nil 827 Dev tender Req. Single offer situation

M/s Faively Bangalore is interested

24 17455017

Radiator Asm Kit


Nil 4888 Dev Tender Req. Single indigenous source .M/s Banco Products only Quotes against Tenders resulting into single offer situation


25 16210207

Set Gear Plant




22

26 16080660

Seal Impeller

1. EMD /USA 2. ABB/BRC

Nil 38.24 Dev Tender Req Sinle indigenous source ABB/BRC is not Participating in tenders because of some financial implications.


27 16050320



Nil 17.53 M/s Lohia is single indigenous part l source but not particiapting in tenders so Dev. Tender req.


28 16050332

13.37 No eligible firms found in India

29 16240236

Button Valve Bridge


Nil 33.4 M/s Trident is single indigenous part l source but not particiapting in tenders so Dev. Tender req.


30 18360151

CRIC CONN 8.33 PLUG


Nil 21.24 No indigenous Source. M/s ITT authorised reprentetive only quotes against tenders resulting into single offer situation ,So Dev. Tender REQ.


31 18360083

PLUG 3 POLE MALE


Nil 23.17 No indigenous Source. M/s ITT authorised reprentetive


23

only quotes against tenders resulting into single offer situation ,So Dev. Tender REQ.

32 16141714


1.EMD/USA 2. DE Calb/USA 3. Him Tekno /Solan

Nil 20.72 M/s Tekno is single indigenous part l source but not participating in tenders so Dev. Tender req.


33 16141726

Rocker Arm Exhaust Forging

Nil 30.19 No eligible firms found in India

Table 5: List of items for which developmental tender is suggested

For the above said 33 items we have tried to find out the potential vendors but we are only able to find potential vendors for the 11 items which amounts to Cumulative AAC of 285.03 crores and the list of the those 11 items along with their potential vendors is listed below:

List of items along with some potential vendors

S PL No. Descripti Part-1 Part-ll AAC Remarks Potential

24

N on source Source Value(Lakhs)

vendor

1 16080385



Nil 5714 Dev Tender Req. No registered indigenised firm

M/S Bharat Forge is Interested

2 16040028

CYL Head Stud ASM

1.EMD/USA Nil 2273 Dev Tender Req.

M/s Lohia Corp. Is Interested

3 16030382



Tisco Jamsehedpur

774 TISCo had Never Supplied the item .Dev order Req.

M/s Apex Texmaco is interested

4 16030618

RING SET

1. EMD/USA Nil 310 Dev Tender Req.

M/s Indo German/Gujarat is interested

5 16050253

INLET TUBE ASM



JBM Faridabad is interested

6 16060222

Motor Outline

1. EMD/USA 2. Dayton Phoenix groupinc. /USA


M/S Thyran Thane is interested

7 16241186




M/S BOSCh/ Bangalore is interested

8 19110017


Nil 1. EMD/USA 2.GE Transportation Parts

8807 Dev tender Req

1.M/S Lohia Kanpur 2. M/s Transloco /CBE

25

LLC/USA interested

9 16080385


1.EMD/USA 2.Walbar inc./USA 3. GE Transportaion Parts LLC/USA


1.M/s Bharat Forge interested

10 16120073

Piston Machined

1. EMD/USA Nil 1249 Dev tender Req

1.M/s FMGIl /GGN Till Now FMGIll Outsourced the casting from china and machined in house ,Now FMGIl is interested to develop in house casting If Long term contracts has been placed on the firm. 2.CooperSatara is also interested

11 17455674

CCB 2.0 1. Knorr Bremse

Nil 827 Dev tender Req. Single offer situation

M/s Faively Bangalore is interested

Total 28503 in lakhs

285.03 in crores

Table5: List of items along with some potential vendors

26

And the list of the remaining 22 items for which we have suggested developmental tender but not able to find the potential vendors. The cumulative AACs of these 22 items is 83.69 crores

List of items for which developmental tender is suggested but not able to find the potential vendors

SN Pl No. Description

Part-1 source Part-ll Source

AAC Value(Lakhs)

Remarks

1 16121053


Nil 73.75

Dev Tender Req

2 16121740

Seal Compressor Bearing

1.EMD /USA 2.ABB/BRC

Nil 71.56

As ABB/BRC is not participating from past few years so Dev Tender Req,

3 16050196


1.EMD/USA 2.NTF/USA 3.Imperial faridabad

Automax Gurgaon

69.93

Dev Tender Req. M/S imperial is single indigenous part-l firm not participating in tenders and there are quality issues in their supplies. M/S Automax Performance is Poor.

4 16050216

68.4

5 16080490

Support Assembly

1.EMD/USA 2.ABB/Vadodara

Nil 144.28

Dev Tender Req

6 16140989

GearTurbo Drive


Nil 65.54

Dev Tender Req

7 16060453

Oil Seprator Asm


Nil 55.43

Dev Tender Req .M/S Parker Hannfin,India is part-1 Souce but not participating in tenders

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8 16030473

IDLER STUBSHAFT ASM



9 16060118


1. EMD/USA Nil 1211 Dev Tender Req

10 16150193




11 18360191

PLUG CRIC 32A72S

1. EMD/USA 2. ITTCorporation /hongkong

Nil 116 Dev tender req.

12 18520888


1. EMD/USA 2.Kay Sons Electricals Pvt.Ltd./varanasi

Nil 191 Dev Tender Req. Single indigenous source .M/s kay sons only Quotes against Tenders resulting into single offer situation

13 17455017

Radiator Asm Kit


Nil 4888 Dev Tender Req. Single indigenous source .M/s Banco Products only Quotes against Tenders resulting into single offer situation

14 16210207

Set Gear Plant



15 16080660

Seal Impeller

1. EMD /USA 2. ABB/BRC

Nil 38.24

Dev Tender Req Sinle indigenous source ABB/BRC is not Participating in tenders because of some financial implications.

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16 16050320



Nil 17.53

M/s Lohia is single indigenous part l source but not participating in tenders so Dev. Tender req.

17 16050332

13.37

18 16240236

Button Valve Bridge


Nil 33.4 M/s Trident is single indigenous part l source but not particiapting in tenders so Dev. Tender req.

19 18360151

CRIC CONN 8.33 PLUG


Nil 21.24

No indigenous Source. M/s ITT authorised reprentetive only quotes against tenders resulting into single offer situation ,So Dev. Tender REQ.

20 18360083

PLUG 3 POLE MALE


Nil 23.17

No indigenous Source. M/s ITT authorised reprentetive only quotes against tenders resulting into single offer situation ,So Dev. Tender REQ.

21 16141714


1.EMD/USA2. DE Calb/USA 3. Him Tekno /Solan

Nil 20.72

M/s Tekno is single indigenous part l source but not articipating in tenders so Dev. Tender req.

22 16141726

Rocker Arm Exhaust Forging

Nil 30.19

Total (in lakhs ) 8368.75

Total (in crores) 83.69

Table 6: List of items for which developmental tender is suggested but not able to

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find the potential vendors

Calculations

Total Procurement at DLW in 2015-16 4500Cr

Total Import done at DLW in 2015-16 1030 cr

Import percentage 1030/4500=22.89%

As per table 5 Import can be reduced by 285.03 cr

Then import can be reduced to =(1030-285.03)= 744.97Cr

Import percentage can be reduced to if table 5 suggestions will be implemented

=744.97/4500=16.55%

Import percentage reduced by =22.89-16.55=6.34%

For some items we are not able to find potential vendors but if they can also be indigenized and if they could be then import can be further reduced by

83.69 cr

Then import will be reduced to =(1030-285.03-83.69)=661.28

Import percentage can further be reduced to if table 6 suggestions will be implemented

=661.28/4500=14.69%

Overall reduction in percentage =22.89-14.69=8.2%

In absolute figures overall reduction in total import can be done upto 6.34x4500=285 crores if table 5 is implemented

In absolute figures overall reduction in total import can be done upto 8.2x4500=369 crores if table 6 is implemented

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Problems Observed

Vendors are not participating (sleeping vendors): For some items it is observed that we have registered vendors but they are not participating. It is found that vendors expect assured business and long term contracts from railways because the items which they are asked to make are railways specific. If they do not get regular contract then they can not survive. To sort out this problem railway need to enter into long term contract so that we can provide assured business to them.

Lack of technology: In railways, some of the items are very much specific and the tolerance limit is almost negligible. For such items it is an obligation for us to procure from foreign sources. As we does not have technology to manufacture such items . So it would be better for India to enter into technology transfer agreement with developed countries Ease of doing business: India ranks low on the "ease of doing business index". Labour laws in the country are still not conducive to the Make in India campaign. According to World Bank’s Doing Business Report 2016 India ranks 130 out of 189 countries in the ease of doing business. This is one of the universally noted disadvantages of manufacturing and investing in India.

Unavailability of raw material: Availability of the raw materials which are required to manufacture the finished goods is major problem in case of indigenization of some items.

Conclusion

In Indian Railways, there is a great need of indigenisation as it lowers the dependence on foreign vendors and it can also generate employment in our country.

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Our data collection may be helpful in reducing the import by 7-8% in Diesel Locomotive Works(DLW). If analysis is carried out all over India then the import in Indian Railway may be lowered by a significant amount.

This can be done by encouraging the indigenous vendors, creating suitable infrastructure for foreign companies to come and manufacture in India and ensuring them long term business.

Thus Make in India program is helpful to empower India by reducing foreign dependency.

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ACKNOWLEDGEMENT - National Academy of Indian...

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