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Kawasaki Heavy may get $4.2 bn India deal, says report

Kawasaki Heavy may get $4.2 bn India deal, says report
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First Published: Tue, Aug 14 2007. 11 45 AM IST
Updated: Tue, Aug 14 2007. 11 45 AM IST
Tokyo: Japan’s Kawasaki Heavy Industries Ltd. is close to winning a contract estimated to be worth up to 400-500 billion yen ($3.4-4.2 billion, Rs1,70,858 crore) to supply freight carriages to India’s newly built railway system, the Nikkei business daily reported on Tuesday, 14 August.
The report sent shares of the heavy machinery maker up 2.2% to 515 yen as of 0344 GMT, outperforming a 0.2% rise in the benchmark Nikkei average.
Kawasaki Heavy is pushing further into the Indian market as India’s government plans to spend some 38 trillion yen on infrastructure over the next five years, with more than 15 trillion yen earmarked for the construction of railway systems, the paper said.
If it clinches the deal, the firm plans to produce 1,900 freight cars over a period of 15 years starting in late 2009, the Nikkei said.
The company is also in the final stage of talks with India’s national rail operator to begin joint production of freight carriages in 2009, the Nikkei said.
Kawasaki Heavy will invest 5-10 billion yen in a controlling stake in a joint production venture with Indian Railways, to be set up next spring, the daily said.
The company could not be reached for comment.
Kawasaki Heavy is vying with Germany’s Siemens AG and France’s Alstom for India’s market for freight and high-speed passenger railway systems, and the Japanese firm aims to win orders by referring to its experience with Japan’s Shinkansen (bullet train) system, the Nikkei said.
Kawasaki Heavy Industries Ltd. is in the final stage of talks with India’s national rail operator to begin joint production of freight carriages in 2009, the Nikkei business daily reported on 14 August.
The company is seen as favourite to win a contract for freight cars for a newly built freight railway in India, the paper said.
The contract is estimated to be worth up to 400-500 billion yen ($3.4-4.2 billion), and Kawasaki Heavy would produce 1,900 freight cars over 15 years from the end of 2009, the Nikkei said.
Kawasaki Heavy is vying with Germany’s Siemens AG and France’s Alstom in India, a promising market for freight and high-speed passenger railway systems, the Nikkei said.
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First Published: Tue, Aug 14 2007. 11 45 AM IST