EMD set to build manufacturing base, supply hub in India
As a part of its PPP initiatives, the government plans to set up a diesel locomotive manufacturing unit at Marhowrah, in Bihar’s Chhapra district. The railways ministry expects the Rs 2,720-crore unit to manufacture 130 diesel locomotives every year. Spread over eight years, the government estimates to source close to 1,000 diesel locomotives.
Currently, GE is the other company in race for the project. The private sector entities entrusted to set up the units would be responsible for maintaining the locomotives for a period of 25 years. According to the railway officials, the government is currently in the process of expediting the process so that the capacities can be up and running within three years.
The $1.5-billion company, EMD, currently sources close to $20 billion of supply material from India. “Our turnover from India has doubled in the past two years and the country is the most dynamic market for us,” Hamilton said. Around 10% of the company’s revenue is generated through its India operations.
Out of the Rs 2,720 crore required for setting up Marhowrah factory, Rs 667 crore would have to be raised from the private entities while the remaining will be infused by the
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