(Image source from: GE Wins Huge $2.6 Billion Locomotive Deal With Indian Railways})
General Electric (GE) has won a $2.6 billion contract from the Indian Government to build new trains for the Indian railways. The locomotive deal is the largest award in India. The contract is aimed at building diesel locomotives for congested state-owned railway of India, so as to modernize the oldest network in Asia.
An amount of $200 million will be invested by GE to build a factory under a joint venture with Indian Railways in Bihar. The idea behind the agreement is the production of 1,000 diesel locomotives over 11 years. This is a huge step from PM Modi for the revision of chronic network under-investment and spurring domestic manufacturing.
GE Transportation chief executive officer Jamie Miller said, “Investment in rail infrastructure has been a topic in India for quite a long time.”
The new deal “supports the modernization of the Indian railroads and it contributes to the local economy.” According to Miller, the contract is the largest one in GE’s history of 100 years in India and comes after the premier’s recent decision to invite foreign investment in railroads.
According to the Railway Ministry, the new GE-built factory will provide 6,000-horsepower and 4,500-horsepower engines. The first locomotives are intended to deliver by the company in the second half of 2017.
-Sumana
