United States multinational conglomerate General Electric on Tuesday warned the Indian government that it would deter future foreign investors and jeopardise the Make in India programme if the Indian Railways alters its deal to buy diesel locomotives from the company, The Economic Times reported. General Electric has already shipped the first locomotive to India, and it will arrive on October 10.
“If the Ministry of Railways moves forward with changes to the joint venture between Indian Railways and General Electric, they will undermine one of the most promising infrastructure projects in the country and put future foreign investment at risk,” the company said in a statement emailed to several media houses. It added that altering the $2.5 billion (Rs 16,426 crore) contract would have a “serious impact on job creation and skills development and cause the government to incur substantial costs.”
Union Railway Minister Piyush Goyal had said on September 24 that the government wanted to electrify the railways network, which has alarmed General Electric. Goyal had mooted the proposal to wind up the deal with General Electric at a review meeting on September 7, according to Business Standard.
General Electric is set to develop and deliver 1,000 diesel locomotives to India. In its statement on Tuesday, the company said the construction of its factory in Bihar and maintenance shed in Uttar Pradesh were under way.
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