The Indian Railways is contemplating termination of a contract with General Electric (GE) for setting up a diesel locomotive factory in India, the Wall Street Journal reported on Tuesday.
Railway Minister Piyush Goyal had declined to comment on the news reports about ending the contract awarded to GE for opening up a diesel locomotive plant in Marhowrah district of Bihar. He, however, said that the Indian Railways will aim for 100% electrification of the entire network.
“Don’t believe all news report… I have not firmed up the plan yet,” Mr. Goyal said.
The project was part of the ₹40,000 crore contracts awarded to GE and Alstom to set up diesel and electric locomotives factories at Marhowrah and Madhepura, respectively, in 2015.
Mr. Goyal added, “I am very keen that we should electrify the entire railway network. My mission is 100% electrification. Electricity is a domestic and self-sufficient resource whereas we have to import diesel. The Railways are investing ₹16,000 crore every year in diesel consumption. So, I will save ₹8,000-10,000 crore.”