FDI bo­nanza for rlys: GE, Alstom may get nod for `40,000-cr lo­co­mo­tive projects

Hindustan Times (Patna) - Live - - Business - let­ters@hin­dus­tan­times.com

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.

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