France's Alstom wins $3 billion Indian railway contract

Alstom will supply India's railways with 800 electric locomotives and set up a local manufacturing plant

French engineering company Alstom has won a contract worth around 200 billion rupees ($3 billion) to supply India's railways with 800 electric locomotives and set up a local manufacturing plant, a railways spokesman said on Tuesday.

The contract is one of the largest awarded to a foreign firm since India last year opened up limited parts of its state-owned railways to 100% foreign direct investment, and comes as the government tries to modernise its vast but outdated rail network.

US company General Electric said on Monday it had won a deal worth $2.6 billion to supply India with diesel locomotives over the next 11 years.