Chennai Metro Officials urge for ‘Make in India’ Clause as Beijing based AIIB set to Fund Project

As Beijing-based Asian Infrastructure Investment Bank (AIIB) is likely to fund $ 800 million for the fourth corridor of second phase of Chennai Metro Rail, officials are urging that the government should include the ‘Make in India’ clause in the tender document.

This comes as Shanghai Tunnel Engineering Co. Ltd. (STEC) emerged as the lowest bidder for the construction of the 5.6-km underground section between New Ashok Nagar and Sahibabad of Delhi-Meerut RRTS corridor. Sources say it is a wake-up call to understand the ‘Make in India’ if included in the tender document will impose restrictions on Chinese bidders.

Since AIIB is a multilateral development bank, officials feel that the clause would benefit Indian companies and help in creating jobs for Indians and also adhere to Prime Minister’s call of ‘Go Vocal, for Local’. ‘Make in India’ clause will promote and encourage Indian partners and Indian investors and help Indians attain self-sufficiency and will be easier for managing the Indian bidders, said sources in DPIIT.

Official sources said that the clause should be included while taking loans from all the multilateral development banks and also in the tender document. Interestingly, a review meeting is scheduled undersecretary of Department for Promotion of Industry and Internal Trade (DPIIT) on June 23.

Sources said that under the ‘Make in India’ clause equipment and manpower can be sourced locally providing opportunities to Indian companies. This would also fill in shortage of key personel in metro industry.

It is learnt that the June 23 meeting will discuss Action Taken Report pertaining to “Atmanirbhar Bharat”. Since Finance Minister has also announced that global bids shall not be invited in government tenders up to Rs.200 crore, the meeting would focus on various requirements of Central Government entities which should be sourced from local or domestic suppliers only. These include metro companies and smart cities.

DPIIT sources said that in order to promote local industry and generate employment to local people, it is important items, which are available locally, should be sourced “exclusively” from local firms. “The item which is not available locally, local suppliers should be encouraged to develop or manufacture in technical collaboration with the foreign manufacturers, if required,” sources added.

According to sources, Beijing-based Asian Infrastructure Investment Bank (AIIB) has agreed to provide loan worth $438.75 million to Chennai Metro Rail for the civil construction of Chennai Metro’s 47 km Line-5’s 26 km section connecting CMBT with Sholinganallur and $356.65 million to finance the 26.1 km Line-4 connecting Lighthouse – Poonamallee Bypass.

Interestingly, the Swadeshi Jagran Manch (SJM) wanted the government to cancel the New Ashok Nagar and Sahibabad of Delhi-Meerut RRTS corridor tender bagged by SETC in the light of the aggression at Galwan, but officials say the contract cannot be cancelled as it is an ADB-funded one and their rules don’t allow for this.

Officials quoted the reason and stressed the need of inclusion of ‘Make in India’ clause in the tender document for Corridor 4 of Chennai Metro rail so that local industry and local manpower could benefit.

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