 "GE plans $ 200 mn locomotives facility for railways in Bihar")
GE will invest $ 200 million (about Rs 1326 crore) to develop and supply Indian Railways with 1,000 diesel locomotives. As a result, the company will build a diesel locomotive manufacturing facility in Marhowra (Bihar), as well as maintenance sheds at Bhatinda (Punjab) and Gandhidham (Gujarat).
Yesterday, GE received a letter of award from the Ministry of Railways for a locomotive supply and maintenance contract, worth approximately $2.6 billion over 11 years. The deal, the largest in GE’s 100-year history in India, advances the ‘Make in India’ initiative and reinforces India’s position as a global manufacturing destination.
The deal is expected to be a major boost to India’s railway modernisation efforts, and will provide skill development opportunities for local talent.
Last year, the Government of India allowed 100 percent Foreign Direct Investment (FDI) in the railway sector. The Marhowra diesel locomotive project marks one of the first major instances of FDI in enhancing India’s rail locomotive capacity.
“This project combines GE’s deep infrastructure and manufacturing expertise with India’s growth priorities. This is an exciting and integral part of our localisation strategy in India. We are excited about working with Indian Railways and continuing to invest in the region,” commented Jamie Miller, chief executive officer, GE Transportation.
The letter of award confirms GE as the selected bidder, following a competitive bidding process, for the project to develop a diesel locomotive manufacturing facility and deliver 1,000 diesel locomotives. GE will sign an agreement to formalise the contract and establish a joint venture with Indian Railways before breaking ground to construct the facility.
Yesterday, GE received a letter of award from the Ministry of Railways for a locomotive supply and maintenance contract, worth approximately $2.6 billion over 11 years. The deal, the largest in GE’s 100-year history in India, advances the ‘Make in India’ initiative and reinforces India’s position as a global manufacturing destination.
The deal is expected to be a major boost to India’s railway modernisation efforts, and will provide skill development opportunities for local talent.
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“This infrastructure project is further evidence of India’s position as a growth engine for Asia. It is a major advancement and milestone for India and for GE, and a symbol of our commitment and support of the ‘Make in India’ initiative,” said Jeff Immelt, Chairman and CEO, GE.
Last year, the Government of India allowed 100 percent Foreign Direct Investment (FDI) in the railway sector. The Marhowra diesel locomotive project marks one of the first major instances of FDI in enhancing India’s rail locomotive capacity.
“This project combines GE’s deep infrastructure and manufacturing expertise with India’s growth priorities. This is an exciting and integral part of our localisation strategy in India. We are excited about working with Indian Railways and continuing to invest in the region,” commented Jamie Miller, chief executive officer, GE Transportation.
The letter of award confirms GE as the selected bidder, following a competitive bidding process, for the project to develop a diesel locomotive manufacturing facility and deliver 1,000 diesel locomotives. GE will sign an agreement to formalise the contract and establish a joint venture with Indian Railways before breaking ground to construct the facility.