GE Transport, BHEL in joint venture

GE Transportation, a unit of the US-based General Electric Company, has formed a joint venture with Bharat Heavy Electricals Ltd to bid for the manufacture of 1,000 fuel-efficient, environment-friendly locomotives requisitioned by the Indian Railways.

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The engines are expected to save millions of litres of diesel over the next 30 years for the Railways.

GE Transportation is likely to have a majority stake in the venture, while the remaining will be with Bhel, said Pratyush Kumar, president and CEO, GE Infrastructure.

The Railways will hold 26 per cent stake in whichever consortium wins the tender.

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Apart from the GE Transportation-Bhel combine, US-based Electro-Motive Diesel Inc is the other shortlisted bidder for the tender.

“In case we win, GE Transportation and Bhel will have to set up a manufacturing facility in Bihar from where the locomotives will be rolled out,” Kumar told DNA Money. GE will be supplying the technology and designs for the locomotives from its design centre in Bangalore.

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The winner of the tender is expected to be named early next year.

It will take three years for the facility to come up in Bihar, Kumar said.

GE Transportation is already working on what is called ‘In India And For India Project’, he said.

BHEL will support the joint venture through its local knowledge and technology, logistics and construction expertise. Kumar said these locomotives will be a part of the company’s global Evolution® Series, which were introduced in 2005 in North America. Currently there are 2,800 units of these locomotives running globally.

These locomotives deliver 5 per cent higher fuel efficiency and a 40 per cent reduction in emissions over previous locomotives.

GE’s locomotive reduces fuel consumption by approximately 300,000 gallons, or more than 1.1 million litres, over the life of the locomotive, which is close to 30 years, said Kumar.

These locomotives have been designed in the John F Welch Technology Center in Bangalore, India, and will have a peak output of 6,000 GHP delivering 40 per cent more power at 30 per cent less weight than the locomotives of the same series currently being utilised in North America.


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