General Electric will invest USD 200 million to develop and supply Indian Railways with 1,000 diesel locomotives. The company received a Letter of Award from the Ministry of Railways for a locomotive supply and maintenance contract, worth approximately USD 2.6 billion over 11 years.
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 formalize the contract and establish a joint venture with Indian Railways before breaking ground to construct the facility.
Under the deal, the company will build a diesel locomotive manufacturing facility in Marhowra district in the Indian state of Bihar, as well as maintenance sheds at Bhatinda in Punjab and Gandhidham in Gujarat.
“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 GE Chairman and CEO Jeff Immelt.
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