General Electric and France’s Alstom have been awarded contracts of $2.6 billion and $3 billion, respectively, to help India modernize its outdated state-owned railroad network.
General Electric and Alstom have been awarded contracts worth a combined $5.6 billion to supply India with new locomotives to help the country modernize its outdated state-owned railroad network.
U.S.-based GE will provide Indian Railways with 1,000 diesel locomotives over the next 11 years and invest an additional $200 million to develop local manufacturing and maintenance facilities. The $2.6 billion deal is the company’s largest-ever contract its 100-year history in India, according to a statement from GE.
“This infrastructure project is further evidence of India’s position as a growth engine for Asia,” GE Chairman and CEO Jeff Immelt said of the agreement. “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.”
Indian Prime Minister Narendra Modi’s government has said it will invest $137 billion on its railways by 2020, and has opened up limited parts of the state-owned network to private and foreign investment, according to news service Reuters.
“This project combines GE’s deep infrastructure and manufacturing expertise with India’s growth priorities. This is an exciting and integral part of our localization strategy in India,” added Jamie Miller, CEO of GE Transportation. “We are excited about working with Indian Railways and continuing to invest in the region.”
Alstom, a multinational transportation equipment manufacturer headquartered in Levallois-Perret, France, will produce 800 electric locomotives and also construct a local factory in Bihar, India for about 200 billion rupees (U.S. $3 billion). The company has not commented publicly on the agreement.
Both deals have yet to be finalized officially, but preliminary reports indicate Alstom and GE would own 74 percent of their respective joint ventures with Indian Railways, which will hold the remaining 26 percent stakes in the companies.
Indian Railways taps GE, Alstom to supply $5.6b in locomotives
