General Electric Co. and Alstom SA won contracts worth $5.6 billion to build locomotives for India’s congested state-owned railway, as Prime Minister Narendra Modi strives to modernize Asia’s oldest network.
GE won a $2.6 billion deal for diesel engines and will invest $200 million to build a factory under a joint venture with Indian Railways. The goal is to produce 1,000 locomotives over 11 years. Alstom will make electric engines in a contract worth about $3 billion. The steps are among Modi’s biggest toward reversing chronic network under-investment and spurring manufacturing.