GE to set up $2.6-bn railway manufacturing facility in Bihar
US-based General Electric (GE) has won a $200-million (Rs.14,656 crore) contract from the Indian Railways to set up a Diesel Locomotive Factory (DLF) in Saran, Bihar. Indian Railways will hold 26% equity in the joint venture company. It has completed the acquisition of 226 acres of land for this project. Terming the agreement “as a giant leap forward in ‘Make in India’ initiative”, Ministry of Railways said, “These modern powerful locos will be useful for growing heavy haul freight operations and will also support the mega freight operations for the upcoming dedicated freight corridors. This factory (will) lead to employment and the development of ancillaries and support industry in the economically less developed neighboring region.” As part of the agreement, GE will manufacture and supply 1,000 diesel locomotives of 6000 HP and 4500 HP to Indian Railways within a period of ten years. In addition, GE will also maintain sheds at Bhatinda in Punjab and Gandhidham in Gujarat. “Locos in combination can operate as 9000 HP and 12000 HP multiple units to provide the necessary economical and environment friendly motive power to growing heavy haul freight business of Indian Railways,” the ministry said. The development of 1000 freight locos will cost about Rs.14,656 crore. GE will work on 100 locomotives per annum for 10 years and will also maintain them up to 13th year. Thereafter, Indian Railways will look after the maintenance of these locomotives. The company will develop these locomotives with latest technology such as electronic fuel injection system, motor driven blowers and compressors, REMMLOT system and noise control. These locomotives will be highly fuel efficient and will be compliant to UIC 624 emission norms. The new project will introduce new technologies to the Indian railways through high-paced indigenisation costing about Rs.1000 crore within first two to three years. “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,” said Jamie Miller, CEO, GE Transportation.
November 10, 2015 | 4:27pm IST.
to success.