Siemens secures Rs 26,000 crore locomotive project in India; Stock rises

17 Jan 2023 , 11:59 AM

Siemens Limited stocks rally in the market during Tuesday’s trading session as the company has received largest order for 1,200 locomotives of 9000 horsepower (HP) from Indian Railways, marking the single largest locomotive order in the history of Siemens Mobility and single largest order in the history of Siemens in India. 

As per the filing, the company will design, manufacture, commission and test the locomotives and further deliveries are planned over an eleven-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. Maintenance will be performed in four Indian Railways depots located in Vishakhapatnam, Raipur, Kharagpur and Pune. Locomotive assembly and maintenance will be implemented together with the staff of Indian Railways. The contract has a total value of Rs. 26,000 crore (approximately), excluding taxes and price variation.

‘Siemens is supporting the sustainable transformation of India’s transportation sector as the country seeks to almost double freight capacity on its railways,’ said Siemens CEO Roland Busch.

He further added, ‘I’m proud that this major order will help India achieve its ambitious goal of creating the world’s largest green rail network, as our locomotives will save more than 800 million tons of CO2 emissions over their lifecycle.’

The state-of-the-art locomotives will be used for freight transport throughout the Indian Railways network and are specified to haul loads of 4,500 tons at a maximum speed of 120 km per hour. 

Producing 9000 HP, they will be one of the most powerful freight locomotives in the world. They will be equipped with advanced propulsion systems that are also produced locally in Siemens factories in India as well as the Railigent platform to deliver high levels of availability and performance.

At around 12:05 PM, Siemens was trading at Rs2950.35 per share higher by 0.23% on the BSE.

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