GE bags Rlys’ order for making diesel locomotive engines

Tribune News Service

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New Delhi, November 9

Taking a giant step forward in ‘Make in India’ drive, the Indian Railways today issued a Letter of Award to the Indian arm of the US giant GE, the GE Global Sourcing India Pvt. Limited for setting up of Diesel Locomotive Factory (DLF) at Marhowra, Saran district, Bihar, and procurement and maintenance of mainline Diesel Electric Locomotives.

A joint venture company between Ministry of Railways and GE Global Sourcing India Pvt. Ltd will now be incorporated, which shall construct and run the DLF, Marhowra.

The Ministry of Railways will hold 26% equity in the joint venture subject to a maximum of Rs 100 crore.

The Railways has completed the acquisition of 226 acres for this project and taken possession. The factory is expected to be set up within three years at a cost of around Rs 1,000 crore.

The JV company will work on an assured offtake model of 100 locomotives per annum for 10 years with the basic cost of 1,000 freight locos being around Rs 14,656 crore.

The company will also maintain these locomotives for 13 years following which the Indian Railways will take over the maintenance of these locomotives.

The highly modern diesel electric 4,500 HP and 6,000 HP locomotives will also operate as 9,000 HP and 12,000 HP multiple units to provide the necessary economical and environment-friendly motive power to growing heavy haul freight business of Indian Railways.

This will also support the upcoming Dedicated Freight Corridors. In future, passenger version of these locomotives may also be manufactured.

This factory will lead to direct and indirect employment and development of ancillaries and support industry in the neighbouring region which is economically less developed leading to much more investment and related job creation.

These locomotives will be highly fuel efficient which will bring savings in fuel costs on Indian Railways and would be equipped with latest technology like electronic fuel injection system, motor driven blowers and compressors, REMMLOT system, noise control to the latest standards.

The project was announced in the year 2006-07 to select a joint venture partner through international competitive bidding.