GE has been awarded a multi-billion dollar contract to supply locomotives to Indian Railways which in turn will see the company invest $200 million in manufacturing infrastructure.
The partnership with GE follows a decision last year by the Indian government to allow 100 per cent foreign investment in the railway sector.
Under the agreement, GE will construct a new manufacturing facility in Marhowra, Bihar, and maintenance depots in Bhatinda in Punjab and Gandhidham in Gujarat.
The factory in Marhowra will support the supply of 1,000 diesel locomotives over the next 11 years – a contract worth $2.6 billion.
GE is now waiting to finalise the contract after which it will establish a new joint venture with Indian Railways.
