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.
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