Lee Spears, Bloomberg
Hong Kong: India expects General Electric Co., Bombardier Inc. and Alstom SA to apply to set up factories to build locomotives in the country, the first time foreigners are being invited to do so, a state official said.
The government will invite bids in the next one-to-two months to build two factories to supply as many as 200 diesel and electric locomotives a year, said Gajendra Haldea, adviser to the deputy chairman of India’s Planning Commission.
About $80 billion (Rs3,49,240 crore) of investment are expected in India’s railway system over the next six to seven years, $30 billion of which would be from the private sector, Haldea said.
“The thinking at the moment is not to bind the bidder to make any level of investment, but to lay down over a given period a given proportion of the total value added in India,” Haldea said today at the Asia Pacific Rail 2007 conference in Hong Kong. “The present thinking is not to prescribe any investment levels.”
General Electric is based in Fairfield, Connecticut. Bombardier, the world’s biggest maker of trains, is based in Montreal and Alstom, the world’s biggest maker of high-speed trains, is based near Paris.