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Railway Ministry Denies Conflict of Interest in ₹26,000 Crore Dahod Locomotive Contract

The ministry says it followed standard procedures in awarding the deal to the lowest bidder in a competitive tender process despite Congress demands for a parliamentary inquiry.

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Overview

  • The Congress has demanded a parliamentary inquiry into the ₹26,000 crore contract, accusing the government of favouring Siemens and lacking transparency.
  • It pointed to Railway Minister Ashwini Vaishnaw’s past role as a vice president at Siemens India as evidence of a potential conflict of interest.
  • The Railway Ministry responded that independent technical and financial teams evaluated bids from Siemens and Alstom and awarded the contract to the lowest bidder.
  • Officials stated that about 89% of locomotive components are produced domestically and that Dahod will handle final assembly while critical parts come from Siemens facilities in Maharashtra.
  • The ministry said the locomotives will be maintained at depots in Visakhapatnam, Raipur, Kharagpur, and Pune to bolster India’s railway manufacturing ecosystem.