Congress Claims Conflict in Siemens Deal while Railways Defends
Image credit X.com @ashwiniVaishnaw
Congress Alleges Conflict in ₹26,000 Cr Siemens Deal; Railways Defends Transparency of Locomotive Contract
By TRH News Desk
NEW DELHI, June 23, 2025 — The Congress party raised sharp questions over the ₹26,000 crore contract awarded to Siemens for manufacturing high-horsepower electric locomotives, alleging conflict of interest, lack of transparency, and betrayal of the government’s ‘Make in India’ promise. The Ministry of Railways, in a detailed rebuttal, rejected the allegations and asserted that the bidding process was transparent, competitive, and professionally managed.
At a press conference held at the party headquarters, former MP Brijendra Singh alleged that the contract awarded to Siemens lacked openness and appeared to favour foreign companies at the cost of indigenous capability-building.
Singh pointed to Railway Minister Ashwini Vaishnaw’s past employment with Siemens and GE, calling it a clear case of conflict of interest, especially since Siemens secured its largest-ever contract in India under his tenure. “Is this just a coincidence or a case of conflict of interest?” he asked, adding, “This deal demands a parliamentary inquiry. The people of India deserve transparency.”
He further claimed that despite the government’s initial announcement in 2022 that locomotives would be fully manufactured at the Indian Railways’ facility in Dahod, Gujarat, only final assembly and testing are currently taking place there. “The critical components, including engine systems and power converters, are still being produced at Siemens’ facilities in Nashik, Aurangabad, and Mumbai,” he said.
“This is not ‘Make in India’. It’s ‘Assemble in India’ under foreign control,” Singh remarked, alleging that Indian engineers were being reduced to technicians performing low-value tasks, while India was being deprived of core technological capabilities.
The Ministry of Railways issued a detailed statement dismissing the Congress’s concerns. It said the tender process was transparent, with only two global companies—Siemens and Alstom—possessing the capability to design and build 9,000 horsepower locomotives. Both participated in the bid.
“The contract was awarded to the lowest financial bidder, and the evaluation was done by technical and financial experts, not ministers,” the ministry said. It emphasized that since 2016, ministers no longer approve tenders, a process now handled by Railway Board members and zonal units, ensuring full institutional transparency.
On the allegation of limited local manufacturing, the ministry clarified that 89% of the components used in the Dahod locomotives are made in India. “A locomotive is a highly complex system, and its parts are being manufactured across India,” it noted, adding that such integration marks a growing railway component ecosystem in the country.
The ministry also stressed that the contract follows life-cycle cost-based procurement, a shift aimed at ensuring long-term reliability and safety of locomotives. The Dahod-made units will be maintained at four major depots: Visakhapatnam, Raipur, Kharagpur, and Pune.
Singh, however, claimed that the government’s announcement was more about optics than substance. “This is part of a larger pattern,” he said. “The government prioritizes headlines over genuine outcomes, benefiting foreign corporations while hollowing out India’s capacity.”
He also pointed to a sharp slowdown in the manufacturing sector during the BJP-led regime, citing data showing a drop from 7.4% average growth (2004–2014) to just 3.15% between 2014 and 2024.
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Indian media instead of getting into finer & threadbare details of contracts awarded which require payment from the exchequer is orchestrating & amplifying government’s stand in brazen non-conformity to journalistic principles of India’s 78 year old democracy