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GE to supply 1000 diesel locomotives to Indian Railways

GE will invest $200 million to develop and supply Indian Railways with 1000 diesel locomotives. The company 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 largest deal in GE’s 100-year history in India, 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 effort is a major boost to India’s railway modernization efforts, and will provide skill development opportunities for local talent.

“This infrastructure project is further evidence of India’s position as a growth engine for Asia,” said GE Chairman and CEO Jeff Immelt. “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.”

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 localization strategy in India,” said Jamie Miller, GE Transportation Chief Executive Officer. “We are excited about working with Indian Railways and continuing to invest in the region.”

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.

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