Date
21 September 2017
India needs more diesel locomotives to improve its transportation system and boost trade. Photo: Bloomberg
India needs more diesel locomotives to improve its transportation system and boost trade. Photo: Bloomberg

GE bags US$2.6 bln Indian Railways contract

General Electric Co. has won a bid for a US$2.6 billion deal with India’s state-owned rail company to supply and service 1,000 diesel locomotives.

The locomotive agreement is GE’s largest-ever deal in India and the biggest contract ever won by its transportation unit, the Wall Street Journal reported.

“This infrastructure project is further evidence of India’s position as a growth engine for Asia,” GE chairman Jeff Immelt said in a statement.

“It is a major advancement and milestone for India and for GE.”

Indian Railways said it will form a joint venture with GE to make the locomotives, with GE holding a 74 percent stake and the state-owned rail company owning the remaining 26 percent.

GE will invest US$200 million in a plant in the Indian state of Bihar where the locomotives will be built, GE Transportation chief executive Jamie Miller said.

Indian Railways said it will buy 100 diesel locomotives a year for 10 years from the joint venture.

The locomotives, to be used to haul freight, will be delivered starting in 2017, GE said.

– Contact us at [email protected]

RA/CG

EJI Weekly Newsletter

Please click here to unsubscribe