FDI bonanza for rlys: GE, Alstom may get nod for `40,000-cr locomotive projects
Global giants GE and Alstom are likely to be awarded the contracts for setting up of multi-crore diesel and electric locomotive factories in Marhora and Madhepura in Bihar, marking the first major foreign direct investment (FDI) in rail projects.
Dubbed as the first big-ticket project under the Make in India initiative in the public transporter, GE and Alstom will be handed over the high-value contract acceptance letters by Railways next week, sources said.
The projects, closely monitored by the Prime Minister’s Office, involve manufacturing of 1,000 diesel locomotives and 800 electric locomotives over the next 11 years and is worth about `40,000 crore.
US multinational GE, which has emerged as the lowest bidder for the `1,200-crore Marhora diesel locomotive factory, is expected to manufacture 1,000 locomotives over 10 years. While 100 will be imported, rest will be manufactured at Marhora as part of the Make in India programme.
French major Alstom, the lowest bidder for the `1,000-crore Madhepura electric locomotive factory, will manufacture 800 highpower electric locomotives in the next 11 years. While five diesel locos will be imported, the rest 795 will be manufactured at Madhepura.