GE Lands Big India Deal

“It will bring this technology to a market that needs it. For them, this is really aligned with ‘Make in India, ‘ ” GE’s Miller said. The land has already acquired by Indian Railways, and the factory is expected to be completed within three years.

The “made in India” initiative is one of the emblematic policies of the Indian Prime Minister Narendra Modi which aims to attract large foreign investments in the country and strengthen local manufacturing.

Railways on Monday awarded the much-awaited diesel locomotive factory project in Marhaurah to USA manufacturer GE Global signifying an FDI of around Rs 2,500 core – the first for the sector.

The US-based company confirmed that the fleet will include diesel trains which would be supplied to India over the next 11 years.

French major Alstom will manufacture 800 high power electric locomotives locos in the next 10 years, in a deal worth $3 billion.

General Electric has landed a $2.6 billion contract to supply India with 1,000 diesel locomotives, the latest effort to upgrade the country’s sprawling rail network.

With the government allowing 100 per cent FDI in Railways, the setting up of the two locomotive plants in joint venture mode is crucial for the public transporter in order to boost its infrastructure.

Alstom will manufacture 12,000 HP electric locomotives to be used for heavy haulage.

GE said the deal was the biggest it had won in India, and would see the company invest US$200m to build the factory at Marhowra in the state of Bihar as well as maintenance facilities at Bhatinda in Punjab and Gandhidham in Gujarat. India plans to spend $137 billion over the next five years to modernise the railways.

India’s railways is a lifeline for the more than 23 million people who use it every day.