BHEL Plans to set up Locomotive plant

Bharat Heavy Electricals (Bhel) will now set up a greenfield project for manufacturing locomotives in the country. It is already in talks with global majors such as French train maker Alstom, German rail transit solutions firm Bombardier Transportation GmbH, Siemens and General Electric for forming a joint venture. Bhel proposes to offer 49 per cent equity to its partner in the new venture. The project will start with an initial investment of Rs 1,000 crore.

The move comes after Bhel decided to bid for the tender floated by Indian Railways to procure 660 electric locomotives, at an estimated cost of Rs 25,000 crore. Bhel is already looking to tie-up with a foreign locomotive manufacturer to set up an electric locomotive factory in Madhepura, eastern Bihar. “This greenfield project will be a new venture. We’ve a board meeting on September 17, where the issue of offering 49% in the JV will be discussed. We’re already in talks with some international players and will announce the JV by end of this month,” a Bhel official confirmed.

The company has already identified two locations Bhopal in Madhya Pradesh and Vizag in Andhra Pradesh where this project will be set. The new JV will ensure an initial investment of Rs 1,000 crore, which may further be increased.

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