NEW DELHI: US conglomerate General Electric warned the government that it would lead to “substantial costs”, deter future foreign investors and hurt the “Make in India” mission if Indian railways modify their $ 2 billion agreement to buy diesel locomotives from the company.
GE has already shipped its first diesel locomotive to India, which will arrive on October 10 under a contract to develop and deliver 1000 diesel-electric locomotives, but the company’s global leadership is thwarted by India to accelerate its switch to 100 % of electric locomotives could derail the agreement.
“If the Ministry of Railways moves forward with changes in the joint venture between Indian Railways and GE, they will jeopardize one of the country’s most promising infrastructure projects and jeopardize future foreign investment,” GE said in an e-mail . The consequences would be significant, he said.
“Changing this contract will have serious implications for job creation and skills development and will result in substantial government costs, which will also jeopardize the signing of the government’s” Doing in India “initiative. and that the company continue to execute fully towards the plan, “he said.
Government officials said railways would save Rs 1 lakh from growing fuel bills and maintenance for more than a decade by removing diesel locomotives.
Government officials said demand for electric locomotives would be considerable, while manufacturing capacity was limited to 200 per year by rail, with the exception of the Madhepura plant at Alstom, which could supply 800 in a decade.
While Transport Minister Piyush Goyal declined to comment on media reports, sources said that railroads told GE that although it does not have the ability to do crazy electrics, it can either get the technology or do it in a joint venture with another company to meet the demand.
The railroads also offered GE the opportunity to install a locomotive maintenance hangar. However, GE is considering making its locomotives in India.