General Electric has won a contract worth $2.6 billion to supply 1,000 diesel locomotives to Indian Railways over the next 11 years. This is GE’s largest contract in its 100 year association with India. GE plans to build a $200 million manufacturing facility in the state of Bihar. France’s Alstom has also been awarded a contract to supply 800 electric locomotives. Indian Railways offers some of the world’s lowest fares, and transports 23 million people every day. It’s also the chief mode of transportation of commercial goods. More than 1.3 million people work for Indian Railways, making it one of the largest employers in the world
“It [GE] will bring this technology to a market that needs it. For them, this is really aligned with ‘Make in India,” Jamie Miller, chief executive officer of GE Transportation, told Reuters. “In most of our growth markets, localization is typically a key part of any infrastructure deal we do,” he added.
The contracts are two of the first and the largest to be awarded to foreign firms since India last year allowed 100 percent foreign direct investment in certain parts of its railways, says Business Insider. Railway reform has been among the top priorities of Prime Minister Narendra Modi, who has opened the sector to foreign investment as part of his “Make in India” campaign. The program, which aims to turn India into a global manufacturing hub, has already attracted investment from General Motors and Foxconn, reports CNN Money.
