Indian Railways Signs Deals With Alstom, GE for 1,800 Locomotives
November 30 2015 - 10:51AM
Dow Jones News
By Santanu Choudhury
NEW DELHI--Indian Railways signed agreements with Alstom SA and
General Electric Co. Monday for two multi-billion-dollar contracts
for 1,800 locomotives to help upgrade the South Asian country's
rusty railway infrastructure.
As announced earlier this month, Alstom will build 800 electric
locomotives for about $3 billion, while GE will produce 1,000
diesel locomotives for $2.6 billion.
The two companies will set up factories in the Indian province
of Bihar to build and deliver the engines to the Indian state-owned
railway company. Deliveries will start in 2017 and are expected to
continue for more than 10 years.
The contract-signing ceremony took place Monday night and was
attended by India's railways minister Suresh Prabhu, Finance
Minister Arun Jaitley, and senior executives from the two
companies.
Indian Railways will hold a 26% stake in each of the two joint
ventures that will be making the locomotives. Alstom and GE will
each hold the remaining 74% stakes.
Write to Santanu Choudhury at santanu.choudhury@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 30, 2015 10:36 ET (15:36 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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