New Delhi: Bharat Heavy Electricals Ltd (BHEL) may soon enter into a joint venture with the General Electric (GE) Company to make 1,000 locomotive engines for the Indian Railways. BHEL will have a minority stake of 23%, with GE being the majority partner with 51% equity stake. The remaining 26% will be held by the Indian Railways itself, K Ravi Kumar, chairman, BHEL, said on Thursday. “The tender condition of the Indian Railways is such that the foreign technology partner has to be the majority stakeholder,” Kumar said.

GE has emerged the single bidder for assembling and supplying 1,000 dual-fuel locomotive engines to the Railways. The company is yet to receive the final order.

“First, GE has to get the order for supplying the locomotives. Only then can we go ahead and form the joint venture,” Kumar said.

The proposed joint venture will make 100-120 high-powered locomotive engines capable of running on both diesel and electricity at Marohwara in Bihar. Kumar refused comment on whether the tender would be cancelled because it received bid from only one company.

BHEL and GE will form another 49:51 equity joint venture to make components at Bhopal in Madhya Pradesh for the abovementioned locomotive engines, Kumar said. In addition, the state-run heavy equipment maker is in talks with Germany’s Siemens AG, France’s Alstom, and Bombardier Inc for partnership in a tender to supply 150 low-powered locomotive engines.

The three foreign companies were shortlisted by the Indian Railways to supply 150 electricity-run locomotive engines, but none have made their bids so far. BHEL will make such locomotives at Madhepura in Bihar in joint venture with the company that is awarded the tender, Kumar said.

source: DnaIndia

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