Siemens signs Rs 26,000-crore locomotive order with Indian Railways

Capital goods major Siemens on Monday said it had signed a Rs 26,000-crore contract to manufacture 1,200 electric freight locomotives for the Indian Railways.

The contract is the single biggest order for Siemens, the company said in a disclosure to the stock exchanges, and will be used for freight transport. The locomotives are specified to haul loads of 4,500 tons at a maximum speed of 120 km an hour, the company said.

"The 9000 horse power (HP) electric locomotive is a significant milestone in the rail electrification mission of Indian Railways. We will build these in India using the technology provided by Siemens Mobility," Sunil Mathur, managing director and chief executive officer, Siemens, said.

Deliveries are planned over a 11-year period and the contract includes 35 years of full-service maintenance. The locomotives will be assembled in the Indian Railways factory in Dahod, Gujarat, the company said.

Maintenance, on the other hand, will be done at Indian Railways' depots in Visakhapatnam, Raipur, Kharagpur and Pune. The assembly and maintenance will be done along with the staff of Indian Railways, Siemens said.

"The locomotive order will help Indian Railways achieve its ambitious goal of creating the world’s largest green rail network. Our locomotives will help save more than 800 million tons of CO2 emissions over their lifecycle,” Siemens CEO Roland Busch said.

On Monday, the Siemens stock closed trade at Rs 2,943.60 a share on the BSE, down 0.81 per cent over the previous day’s close. In the last one year, the Siemens stock has risen nearly 24 per cent on the BSE. In comparison, the benchmark BSE Sensex has fallen nearly two per cent in the same period.