Minimum Local Content of various metro rail components revised

The government has recently revised the minimum local content (MLC) of various metro rail components under MII-PPP order, 2017 of DPIIT.

The existing Minimum Local Content (MLC) of various metro rail components issued vide this Ministry’s letter of even number dated 13.07. 2018 was reviewed in the last meeting of Managing Directors of various Metro Rail Corporations held on 08.10.2020. The revised minimum local content to be adopted by Metro Rail Companies in the procurement of various components shall be as under:

S. No Metro Rail Components Existing % of MLC Revised % of MLC
1. Rolling Stock 40% which could be increased to 50% from FY-2019 60%
2. Telecom 40% which could be increased to 50% from FY-2020 50%
3. Signaling 30% which could be increased to 40% from FY-2020 and 50% from FY -2023 50%
4. Civil Works (Elevated & Underground) 80% 90% (for Elevated) and 80% (for Underground)
5. Electrical and Mechanical 50% 60%

The above Minimum Local Content would be for Class-I local supplier under MII-PPP Order of DPIIT. For Class-II local supplier, the Minimum Local Content should be kept at 20% for all components as mentioned in extant MII-PPP Order of DPIIT. 

Recent Achievement:

In September this year, the Delhi Metro Rail Corporation (DMRC) on “ Engineers Day” took a major step towards the development of an indigenously built CBTC (Communication Based Train Control) based signalling technology for Metro railway with the launch of the i-ATS, which is an important sub system of the Signalling system .

  • This prototype system as well as a state of the art laboratory for further developing other sub- systems of indigenous CBTC technology was inaugurated at Shastri Park by Sh. Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs in the presence of DMRC’s Managing Director, Dr. Mangu Singh, Mrs. Shikha Gupta, Director, BEL and other senior officials from DMRC and BEL.
  • ATS (Automatic Train Supervision) is a computer based system, which manages train operations.
  • This system is indispensable for high density operations such as the Metro, where services are scheduled every few minutes.
  • i-ATS is the indigenously developed technology, which will significantly reduce the dependence of Indian Metros on foreign vendors dealing with such technologies.
  • Technology systems such as the CBTC are primarily controlled by the European countries and Japan.
  • As part of the ‘Make in India’ initiative of the Government of India, the Ministry of Housing and Urban Affairs (MoHUA) had decided to indigenize the CBTC technology. 
  • Along with DMRC, Niti Aayog, MoHUA, Bharat Electronics Limited (BEL) and CDAC are part of this development.
  • DMRC has been nominated to lead this important ‘Make in India’ initiative. 
  • DMRC has decided to use indigenous ATS (i-ATS) while upgrading the ATS of line 1 (Red Line) i.e. from Rithala to Shaheed Sthal, Ghaziabad.
  • The same shall also be used in Phase 4.
  • Another MoU was signed at the occasion with BEL for indigenous development of “Rolling Stock Drivers’ Training System” for training driving and troubleshooting skills to Train Operators.
  • We are totally dependent on import for this.
  • The training systems, popularly known as driving simulators, procured so far are Rolling Stock specific.
  • The indigenous system can be utilised for multiple stocks by selecting from among the options available in the database.

Source: MoHUA | Image Credit: DMRC

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