R. Nourry, Alstom Toma
Industryweek 9737 111015alstomtrainindia

Alstom Lands Mega Indian Rail Deal

Nov. 10, 2015
The Indian government has awarded $5.6 billion in new train contracts already this week ($3 billion to Alstom today, $2.6 billion to GE Monday) — and the country has more major plans to refurbish its rails.

NEW DELHI — French engineering firm Alstom has won a contract worth $3 billion to modernize India’s vast colonial-era train network, the government announced Tuesday, a day after another mega agreement was announced.

Alstom will supply 800 electric locomotives and build a factory in the eastern state of Bihar as part of a contract expected to be signed in a month, a senior railways ministry official said. On Monday, the Indian government said it 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.

“GE will manufacture 1,000 diesel locomotives while Alstom has been picked for 800 electric locomotives meant mainly for heavy haulage,” the official said on condition of anonymity.

The Press Trust of India news agency said the Alstom deal was worth 200 billion rupees ($3.02 billion).

A statement on the Indian government website said the Alstom and GE deals signified “a giant leap forward in Make In India drive,” Prime Minister Narendra Modi’s flagship manufacturing initiative. 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 locomotives under the new deals will be highly fuel efficient “which will bring savings in fuel costs on Indian Railways,” the government statement said. “These locomotives will be equipped with latest technology like electronic fuel injection system, motor driven blowers and compressors ... (and) noise control to the latest standards.”

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Your Industry 4.0 Journey

Sept. 24, 2023
When It Comes to Industry 4.0, the Journey is the Destination. Industry 4.0 must be embraced as a long-term, strategic mindset of digital transformation that dynamically alters...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

You Cannot Stay Competitive by Bolting New Technologies to a Legacy ERP

Oct. 20, 2023
Read this white paper to understand the benefits of shifting to a next-generation ERP system as part of a DOP.

Voice your opinion!

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