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    India receives first GE locomotive under $2.5 billion deal

    General Electric’s first diesel-electric locomotives arrived in India , kicking off the US conglomerate’s $2.5 billion plan to supply 1,000 such engines.
    “It is the first of 40 locomotives that has been imported to India from the U.S.
    The remaining 960 will be built at GE’s Brilliant Factory, which is being constructed at Marhowra in Bihar, and will open in 2018,” GE said in a statement.

    The railways was debating the need to purchase diesel-powered locomotives as it is turning to electric power to haul trains, but last month, GE had cautioned the Indian government of substantial cost that it would incur, besides hurting the future investment in the country, if it made changes to the joint venture it signed with the company in 2015.
    The Indian government, which is looking to achieve 100% electrification of the railway network, has already offered GE to manufacture electric locomotives at their upcoming unit in Bihar.
    If the government pulls out of the joint venture, it will have to pay Rs 1,300 crore to the company. However, it has also estimated a saving of about Rs 8,000 crore per year on account of an all-electric rail network in the country.
    “Through this project, we’re creating a robust supply chain ecosystem in India, and will localize more than 70 percent of all content.
    We’re proud of the more than 6,000 jobs, that have been created by GE in Bihar and Uttar Pradesh, and remain committed to our work in the country,” said Vishal Wanchoo,president and CEO, GE South Asia.
    With inputs from: The Economic Times
    Image link : Internet sources


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