GE, Alstom to supply diesel, electric locomotives for Indian Railways



General Electric (GE) will invest as much as $200 million (around Rs 1,326 crore) to develop and supply Indian Railways with 1,000 disel locomotives.

GE and Alstom of France, signed deals worth $5.6 billion (around Rs 37,100 crore) to manufacture locomotives for the Indian Railways.

Alstom will supply 800 electric locomotives and build a factory in Bihar, said railways spokesman Anil Saxena, on 10 November. The contract’s value, and the new factory is worth $3 billion (around Rs 20,000 crore), he added.

The deal is likely to encourage modernisation efforts of the India Railways and provide skill development opportunities for local talent.

As part of the contract, the company will build a diesel manufacturing facility in Marhowra in Bihar, as well as maintenance sheds at Bhatinda in Punjab and Gandhidham in Gujarat.

The deal advances the ‘Make in India’ initiative and strengthens India’s position as an international manufacturing destination.

The GE received a letter of award from the Ministry of Railways on, 9 November, for a locomotive supply and maintenance contract, over 11 years, which is the largest in the company’s 100-year history in India.

“This project is proof of India’s position as a growth destination for Asia and a symbol of GE’s commitment and support of ‘Make in India’ initiative,” said Jeff Immelt, chairperson and CEO, GE.

Last year, the Union government allowed 100% FDI in the railway sector. The Marhowra diesel locomotive project marks one of the first major instances of Foreign Direct Investment in enhancing India’s rail locomotive capacity.

“This project combines GE’s infrastructure and manufacturing expertise with India’s growth priorities. We are excited about working with Indian Railways,” said Jamie Miller, chief executive officer, GE Transportation.

GE will sign a pact to formalise the contract and enter into a joint venture with Indian Railways before breaking ground to construct the facility.


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