Economy
Prabhu gives green signal to much awaited big-ticket FDI proposals
With the government allowing 100% FDI in the railway sector, setting up of the two big-ticket locomotive plants in Bihar through joint venture model is crucial for Railways to give a boost to its infrastructure
 
Railway Minister Suresh Prabhu has given the go-ahead to two much awaited big-ticket foreign direct investment (FDI) proposals for setting up diesel and electric locomotive plants in Bihar at a cost of Rs2,400 crore. This ends the suspense over the future of Madhepura electric locomotive plant and Marhora diesel locomotive plant in the state. 
 
The Railways have finalised the financial bidding for the high-value joint venture projects after considerable delays. After prolonged due diligence, there has been repeated revision of bidding documents. The request for proposals (RFP) containing financial bidding documents for both the plants are ready and the shortlisted bidders have been intimated the same, said a senior railway ministry official. 
 
Four global companies—Alstom, Siemens, GE and Bombardier—have been shortlisted for the proposed electric locomotive factory at Madhepura.  Two multinationals—GE and EMD—are vying to get the diesel locomotive plant at Marhora. The estimated cost of the factories is about Rs1,200 crore each. The financial bidding will be opened on 31st August and there will be two pre-bid meetings held in between, the official said. 
 
With the government allowing 100% FDI in the railway sector, setting up of the two locomotive plants in joint venture model is crucial for Railways to give a boost to its infrastructure. The two projects are among top eight infrastructure projects being monitored by the Prime Minister’s Office (PMO).
 
The Madhepura plant will manufacture 800 electric locomotives of 12,000 horse power (HP) over 11 years. While five electric locomotives will be imported, 795 will be manufactured at Madhepura, as per the bidding condition.
 
Marhora plant will produce 4500 HP and 6,000 HP diesel locomotives using state-of-the-art technology. In the course of about 10 years after commissioning, the proposed Marhora plant is expected to manufacture about 1,000 diesel-electric locomotives, that is 100 locomotives annually.
 
While 700 diesel locomotives will be equipped with 4,500 horse power (HP), 300 diesel locomotives will be manufactured with 6,000 HP. 

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COMMENTS

vishal

2 years ago

this is bound to stir the hornets net in the minds of Railways workers and unions. Whatever assurance given by the Government the Railways will not be privatized, there will be no takers for it in future. Whether or not this will affect the much needed funds for Railways is to be seen. With Private sector/s going to have a big hand in Railway infrastructure the cost of Railway travelling may go up.

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SEBI to launch campaigns for awareness on risky investments

High returns in less time is trouble, SEBI said in its campaign, while asking investors to check the investment scheme details carefully before investing

 

As it clamps down on fraudsters duping gullible investors of their hard-earned money, the Securities and Exchange Board of India (SEBI) is stepping up efforts to make the public aware about the grievance redressal mechanism available to them and safeguards against high-return claims.
 
The market regulator is looking to expand its investor education and awareness programmes through various platforms, including radio and TV advertisements, wherein its focus areas would include Investor Grievance Redressal Mechanism and Collective Investment Schemes.
 
Besides, SEBI plans to launch mass media campaigns on topics such as promotion of mutual funds as an available investment option for small investors, a senior official said.
 
During the current fiscal ending this month, SEBI has already undertaken an all-out mass media campaign to make the public aware about troubles of investing on hearsay and in pursuit of high returns in less time.
 
SEBI has been pursuing a massive Investor Education and Awareness Campaign since December 2012 through media on relevant topics of investor awareness.
 
As part of the campaign, advertisements are released through popular media such as TV, radio and print (newspapers) and are carried at pan-India basis in Hindi, English and 11 major regional languages.
 
So far, the campaign on topics like ‘Grievance Redress Mechanism’ and ‘Collective Investment Scheme’ have covered more than 90,000 TVC spots, more than 40,000 radio spots and over 600 print editions.
 
Using various media, including TV, radio and print, the SEBI has been specially targeting the collective investment schemes (CIS) wherein investors are promised doubling of their investments within a few months, or guaranteed fixed returns for their entire life after investing some thousands or lakhs of rupees.
 
For the maximum impact, SEBI had roped in professional agencies for these campaigns and have made them in as many as 13 languages — Bengali, Assamese, Oriya, Gujarati, Kannada, Malayalam, Marathi, Punjabi, Tamil, Telugu and Urdu, besides Hindi and English.
 
These campaigns were used all over the country with special focus on states like West Bengal, Bihar, Jharkhand, Chhattisgarh, Odisha, Maharashtra and Tamil Nadu, where a large number of investors are affected by such schemes.
 
“Invest thousands. Earn lakhs in no time. How is this even possible?” SEBI said in one of its CIS campaigns.
 
“High returns in less time are trouble,” the regulator said, while asking the investors to check the investment scheme details carefully before investing.
 
In another campaign, SEBI sought to bust one of the most commonly used tactics by those selling such fraudulent scheme, where they cite the example of someone very close having doubled the money in no time.
 
SEBI has also been cautioning investors through its investor education meetings across the country.
 
A large number of such fraudulent activities, many of which are in nature of Ponzi schemes wherein money is collected from a large number of investors and new investors’ money is used to give returns to some previous clients till the operator runs away, have come to light in recent years.
 
While more than 500 such schemes have already faced SEBI’s ire for defrauding investors, thousands others of significant sizes and scales are estimated to be functional in different parts of the country.
 

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COMMENTS

Vaibhav Dhoka

2 years ago

SEBI's and EOW action should be concerted and should be time bound and action taken should be visible then only such frauds can be reduced.Even registered intermediaries indulge in petty frauds but investors knows that no action is taken,they are not reported.

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