GE Likely To Tie Up With Railways For Locomotive Entry In India

New Delhi: General Electric seeks to develop a plant in India in association with the railways to make heavy-haul diesel locomotives. The joint venture is proposed to be majority-owned by GE, while the railways will take a minority stake. The plant will be capable of unveiling 100-120 locomotives a year, Kumar said, adding that the investment could range between $100 million and $200 million. With the economy growing at a fast clip, the railways have framed ambitious plans to upgrade its freight haulage capabilities. In 2005, the railway ministry had mooted a dedicated rail freight corridor to decongest the network at a cost of Rs 60,000 crore. The plant will supply not just to the freight corridor but to the entire railway network. Currently, the railways make all their rolling stock (locomotives, wagons and coaches) in-house. The railways want to use the current opportunity to build factories with world-class technology. With its growing infrastructure needs, GE has identified India as a key driver to expand its business. This year, GE is hopes to clock a turnover of $2.8 billion in the country. By 2010, GE expects its India business will increase to $8 billion 16 per cent of its projected turnover of $50 billion from emerging markets.