Chip Somodevilla, Getty Images; inset: Scott Olson, Getty Images
Industryweek 9735 110915narendramodigedeal

GE Wins $2.6 Billion Indian Train Contract

Nov. 9, 2015
GE CEO Immelt: ‘It is a major advancement and milestone for India, and for GE, a symbol of our commitment and support of the ‘Make in India’ initiative.’

NEW DELHI — The Indian government has awarded a $2.6 billion contract to General Electric to develop and supply Indian Railways with 1,000 diesel locomotives over a period of 11 years, a company statement said Monday.

In accordance with the contract, GE is set to invest $200 million to build a factory and maintenance sheds in the country, in what is being touted as the company’s largest deal in India during its 100-year history in the country.

“’It is a major advancement and milestone for India, and for GE, a symbol of our commitment and support of the ‘Make in India’ initiative,” GE Chairman and CEO Jeff Immelt said in a statement. 

The “Make in India” initiative is one of Indian Prime Minister Narendra Modi’s flagship policies, aimed at seeking larger amounts of foreign direct investment (FDI) in the country to spur growth in domestic manufacturing. 

Modi, who won a landslide election last year with the promise of creating jobs by fostering a business friendly environment, has touted India’s policy reforms and faster project clearances to seek investment in the country. 

India’s vast but crumbling railway network has received special attention under Modi’s government, with Railways minister Suresh Prabhu pledging to spend around $137 billion to modernize it over the next five years. 

As a part of this effort, the Indian government last year also allowed 100% foreign direct investment (FDI) in the railway sector. 

“(The) diesel locomotive project marks one of the first major initiatives of FDI in enhancing India’s rail locomotive capacity,” GE said in the statement.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!