Congress alleges 'favouritism' in Rs 26,000 crore Dahod rail project

The Congress party on Monday mounted a sharp attack on the Centre over the Rs 26,000-crore electric locomotive manufacturing contract, awarded to German engineering major Siemens, alleging a conflict of interest and seeking a parliamentary inquiry into the matter.

At a press conference held at the party headquarters, former MP Brijendra Singh questioned the fairness of the bidding process and accused the government of compromising India's manufacturing promise by limiting the role of the Dahod facility to final assembly.

“Railways Minister Ashwini Vaishnaw has worked with Siemens in the past. Is it a mere coincidence that Siemens secured its largest contract in India under his tenure Or is it a classic case of conflict of interest?” Singh asked.

He added that the Dahod factory, originally announced as a full-fledged locomotive manufacturing facility, was relegated to a basic assembly line. “Critical components like engine systems and power converters are being made in Siemens-owned facilities in Maharashtra. This deprives Indian engineers of core technical expertise,” Singh said.

Raising further questions, Singh pointed to the lack of transparency during the bidding process, saying details of competing firms like Alstom and Bombardier were never made public, and no comparative data was shared.

In a detailed rebuttal, the Ministry of Railways dismissed the allegations as “misleading and factually incorrect”, asserting that the entire bidding process for the 9,000 hp electric locomotives was transparent, competitive, and conducted by a team of technical and financial experts.

“There are only two manufacturers across the world that are capable of building 9,000 hp electric locomotives — Siemens and Alstom — both participated. The contract was awarded to the lowest bidder as per standard procedures,” a senior ministry official said.

Dismissing conflict of interest charges, it clarified that ministers have no role in the tender evaluation process. “Since 2016, tender approvals are done by the empowered Railway board members and zonal units. The process is institutional and devoid of ministerial interference,” the statement said.

The official further stated that 89% of components used in Dahod locomotives are made in India, calling the project a testament to the growth of the domestic railway manufacturing ecosystem.

“A locomotive is a complex machine. Components are manufactured at multiple Indian sites and supplied to Dahod. This is how global railway manufacturing systems operate," the official said.

Responding to concerns over local capacity-building, the ministry emphasised that the project will eventually lead to technology transfer and create employment across multiple Indian cities. “The locomotives will also be maintained at Indian depots in Visakhapatnam, Raipur, Kharagpur, and Pune, adding further value to the national economy," said the official.

He added that the life-cycle cost-based model ensures long-term efficiency, reliability, and safety of passengers — a key focus area for Indian Railways.

Despite the clarification, Congress maintained its demand for a parliamentary probe. “This is not ‘Make in India’, this is ‘Assemble under supervision’. Indian Railways is being reduced to a contracting agency, and public interest demands accountability,” Singh said.