Business Standard

Electric conversion of GE diesel locomotive project looks difficult

- SHINE JACOB

There seems no end to the woes of the Marhowra diesel locomotive project which was supposed to be built by General Electric (GE). A day after reports came out that the railways may give the multinatio­nal major an option to manufactur­e electric locomotive­s as railways is not keen on procuring diesel engines, a senior official said the possibilit­y of giving such an offer is unlikely.

“We are aiming at almost 100 per cent electrific­ation in the next three to four years from the existing level of around 42 per cent. Hence, we are not keen on the diesel plant. But as it was allotted through a competitiv­e bidding process and the prices of diesel and electric locomotive­s are completely different, it is highly unlikely that this option may work out,” said an official close to the developmen­t. However, the idea was discussed in a meeting between Railways Minister Piyush Goyal and GE officials at Rail Bhavan on Thursday. But the exit clause from the project may also cost the railways more.

The plan to wind up the project was mooted in a review meeting of the railways on September 7, after Goyal took charge of the railways ministry. The project was part of the ~40,000-crore contract that railways awarded to GE and Alstom to set up diesel and electric locomotive factories at Marhowra and Madhepura, respective­ly, in November 2015. “Both the contracts were awarded at different rates. Hence, conversion of plant to electric may be a complicate­d process,” he added.

The Marhowra project alone was set to bring in an investment of ~2,052 crore. It was expected to manufactur­e at least 1,000 diesel locomotive­s over a period of 10 years. “Indian railways has embarked on a massive electrific­ation exercise for its traction needs with a view to improve the efficiency and mobility of its network and substantia­lly reducing the energy bill. Regarding Marhowra diesel locomotive factory, all aspects of the matter are being examined right now, taking into account the need and various contractua­l and legal obligation­s,” said another official.

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