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French, US Locomotives For Indian Railways in $5.6 Billion Deal

Discussion in 'World Economy' started by randomradio, Nov 10, 2015.

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  1. randomradio

    randomradio Colonel REGISTERED

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    French, US Locomotives For Indian Railways in $5.6 Billion Deal

    General Electric and Alstom have won contracts worth a combined $5.6 billion (around Rs. 37,100 crore) to supply India's railways with new locomotives, as the vast but dilapidated state-owned network looks to foreign companies to help it modernise.

    France's Alstom has been picked to supply 800 electric locomotives and will also build a factory in Bihar, railways spokesman Anil Saxena told Reuters on Tuesday. The total value of the contract and the new factory is $3 billion (around Rs. 20,000 crore), he said.

    GE will meanwhile provide the railways with 1,000 diesel locomotives over the next 11 years, as well as investing $200 million (around Rs. 1,300 crore) in a plant and maintenance sheds, in a deal worth $2.6 billion (around Rs. 17,300 crore) that is the US company's biggest in India.

    The contracts are two of the first and the largest to be awarded to foreign firms since the government last year allowed 100 per cent foreign direct investment in certain parts of the railways, and comes as New Delhi embarks on a huge modernisation programme to overhaul the world's fourth-largest train network.

    "In most of our growth markets, localisation is typically a key part of any infrastructure deal we do," Jamie Miller, chief executive officer of GE Transportation, told Reuters on Monday.

    GE and Alstom won against competition from rival manufacturers such as Canada's Bombardier Inc and Germany's Siemens.

    Keen to upgrade the country's creaking infrastructure, Prime Minister Narendra Modi's government has said it will invest $137 billion (around Rs. 9 lakh crore) on its railways by 2020.

    It has also opened up limited parts of the state-owned network to private and foreign investment, luring manufacturers hungry for contracts.

    "It will bring this technology to a market that needs it. For them, this is really aligned with 'Make in India'," GE's Miller said.

    India's railways is a lifeline for the more than 23 million people who use it every day. It also offers some of the world's cheapest fares to help the poor travel across the country.

    But the system largely dates back to the British colonial era and successive governments has struggled to generate money to invest and modernise, leaving an ageing and congested network where trains run at an average speed of just 50 kilometres (31 miles) per hour.

    GE said the company had received a letter of award from the government, and it would now sign a formal agreement before beginning construction of the new factory.

    The factories will be built through a public-private partnership model and structured as joint ventures with Indian Railways, which will own stakes in the plants.

    Alstom and its Indian subsidiary were not immediately available for comment.
     
    sangos likes this.
  2. Anees

    Anees Lt. Colonel ELITE MEMBER

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  3. randomradio

    randomradio Colonel REGISTERED

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    The bullet train projects will obviously be bigger than this.
     
  4. arulcharles

    arulcharles Lieutenant FULL MEMBER

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    Why not our locomotives ?
     
  5. randomradio

    randomradio Colonel REGISTERED

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    The new locomotives are for high speed trains, we don't have that technology in India.
     
  6. abhitej

    abhitej Captain SENIOR MEMBER

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    Bullet train is not economically feasible in India. Flight tickets are very cheap in India. Plus land acquisition & construction cost is high.
     
  7. abhitej

    abhitej Captain SENIOR MEMBER

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    These locomotives are for regular trains. More HP will lead to higher average speed due to higher acceleration. Plus for long freight trains.
     
  8. jonas

    jonas Captain SENIOR MEMBER

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    "But the system largely dates back to the British colonial era"

    Once again another completely biased comment, in fact as everyone knows the British built the first railway system in India, and indeed like so many things in India today it is based even now on the British system.

    Now for the reaction to this post from the usual raving anti British posters. "yes it was built by the thieving British to convey the goods stole from India. Millions of Indian's died building this railway so that the dirty British dogs could plunder our country,rape and pillage at will"

    Well I just hope that whoever builds these trains doesn't forget to put some seats on the roofs of the carriage's, as it appears that is where most of the passenger travel (without paying)

    Tell me again how many people die on Indian railways each year, come on guys you have to do better.
     
  9. abhitej

    abhitej Captain SENIOR MEMBER

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    Its a sad thing that British built railways around world & today it does not have technology to build high speed rail in its own country.
     
    venureddy likes this.
  10. jonas

    jonas Captain SENIOR MEMBER

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    That is exactly what we are doing you idiot. Though many people such as myself don't think we need it. At least our people stay alive on our trains. Grow up and ask advice from your mummy before you post again.
     
  11. abhitej

    abhitej Captain SENIOR MEMBER

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    Few days back read in news paper report that Britain is going to become colony of China. Is that true.
     
  12. somedude

    somedude Captain FULL MEMBER

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    Calm down, it's just saying that it's old because the colonial era was long ago; not that it's bad because it's British.

    Does it offend you that Victorian/Edwardian era technology has been surpassed in the late 20th, early 21st century?
     
  13. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Wonder how a county that cant make its own Locomotives can ever build advanced fighter air craft.
     
  14. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    We not only make outstanding Locomotives but also export them the world over. Our designs have less power compared to what US & French Locos have. We are looking for upgrade of our tech only.
     
  15. sangos

    sangos Lt. Colonel ELITE MEMBER

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    So we can build rockets to go to Mars and still cannot build powerful fast locos on earth....?????WTF
     
    Averageamerican likes this.
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