Railways takes in first GE locos as part of a $2.5-billion contract

The Indian Railways has taken the first prototype of diesel locomotive from General Electric (GE) as part of a $2.5-billion contract with the American conglomerate. 

GE Transportation announced on Wednesday that the Indian Railways has confirmed its acceptance of GE’s 4,500-horsepower diesel-electric Evolution Series prototype locomotive, following the completion of testing on railway tracks. The locomotive was handed over in February 2018. Railways minister Piyush Goyal had recently said the diesel locomotives that General Electric (GE) will come out with will be used in border areas as a backup. 

“This is a major step towards fulfilling our contract with Indian Railways. Together we will help modernize Indian Railways' fleet, significantly upgrade India's rail infrastructure and provide critical support for India's growing economy," said Nalin Jain, President, GE Transportation. 

The locomotives are part of a $2.5 billion agreement signed in 2015 in support of the Government of India’s Public Private Partnership ‘Make in India’ program. The deal included an order for 1,000 locomotives, as well as the establishment of a new GE Transportation factory and maintenance sheds in India. 

The acceptance of the locomotives came after months of reviewing "key design aspects, documentation and a thorough validation around various parameters in US and India," the company said in a statement today. The locomotives also completed additional reviews including oscillation trials and rating and performance tests. 

The new units feature an Evolution Series engine and an electronic fuel-injection system for improved fuel efficiency, as well as compliance with international emission standards. The individual axle-control AC propulsion technology will improve hauling capability and decrease life-cycle cost. The locomotives also are digitally enabled for predictive analytics to increase reliability and availability.

The company said that there are 45 locomotives in India that are ready for inspection and acceptance by the Indian Railways. GE’s Roza Maintenance Shed in the state of Uttar Pradesh, India is ready for operations and the construction of the factory in Marhowra, Bihar is in advanced stages towards completion. Operations will begin in the fourth quarter of calendar year 2018. Once fully operational, all locomotives built in Marhowra under the agreement will have 70 percent localized content. 

Earlier this year, the Comptroller and Auditor General (CAG) had said GE's plan to come up with the manufacturing unit at Marhowra was not “in sync with the overall strategic vision of Railways”.

The report added that setting up a new infrastructure for production of diesel locomotives and incurring a huge liability of Rs 171.26 billion.