It Won’t Be Easy For Railways To Terminate GE’s Diesel Locomotive Project In Marhaura

It Won’t Be Easy For Railways To Terminate GE’s Diesel Locomotive Project In Marhaura

Indian Railways plans to scrap the upcoming diesel locomotive manufacturing unit in Marhaura, Bihar, but it won’t be easy.

The national carrier may require cabinet approval to do so and might need to pay damages to the company involved—US giant General Electric Co. (GE).

A senior railway ministry official said on condition of anonymity that “anything that has been approved by the Cabinet can be modified or terminated only after the proposal is taken back to the Cabinet committee”. This person added that in the case of a “big project such as this the company can also seek payment.”

He added that the bigger problem is the timing of the decision as the company plans to deliver the first locomotive to the railways by January-February 2018 and the first imported locomotive is about to reach Indian shores by the first week of October. Read More…

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