Nov 10, 2015 (LBO) – General Electric, an American multinational conglomerate, has won a contract to build new trains for the Indian government, foreign media reports said.
The contract is worth 2.6 billion US dollars and will provide the country with 1,000 new diesel trains over the next 11 years.
“The deal includes a 200 million US dollar investment by the company to build new plants and warehouses,” the report said.
The plan is part of Indian Prime Minister Narendra Modi’s ‘Make in India’ scheme and is expected to the uplift the country’s manufacturing sector.
The contract is one of first and largest to be awarded to a foreign firm since India last year allowed 100 percent foreign direct investment in some parts of its railways.
The India government has been taking steps to improve the country’s railways and plans to spend 137 billion US dollars over the next five years to modernise the system which is old.
GE’s manufacturing plant will be set up in the eastern state of Bihar close to Punjab and Gujarat.