News

Published: Jan 17, 2023
Updated: Jan 17, 2023

Siemens India Secures Record-Breaking Contract for Electric Freight Locomotives with Indian Railways worth Rs 26,000 crore

Siemens India has secured a major contract with the Indian Ministry of Railways for the manufacture of 1,200 electric freight locomotives. This is the single biggest order for Siemens Limited in India and is worth Rs 26,000 crore, not including taxes and price variation. The contract includes an 11-year delivery period and 35 years of full-service maintenance.

Details of the contract:

The 9000 HP electric locomotives will be manufactured in India using the latest technology provided by Siemens Mobility. They will be assembled at the Indian Railways factory in Dahod, Gujarat and will be used for freight transport. The state-of-the-art locomotives are specified to haul loads of 4,500 tons at a maximum speed of 120 km an hour.

Maintenance and assembly:

Maintenance will be done at Indian Railways depots in Visakhapatnam, Raipur, Kharagpur and Pune, and will be carried out by both Siemens and Indian Railways staff.

Positive Environmental Impact:

The new locomotives are expected to have a significant impact on the environment, as they are expected to save more than 800 million tons of CO2 emissions over their lifetime. This aligns with India's ambitious goal of creating the world's largest green rail network.

Minor impact on Stock Prices

The news of the contract had a minor impact on Siemens Ltd's stock prices, with shares trading 0.8% down on the day of the announcement. The stock opened at Rs 2966.2 and touched an intraday high and low of Rs 2979.0 and Rs 2938.35, respectively. However, the total market cap of the company at the time of the announcement was Rs 104877.42 crore.

Deal news already factored in by markets:

This contract is a major win for Siemens India and demonstrates the company's commitment to supporting the Indian government's efforts to modernize and upgrade its railway infrastructure. The contract also showcases Siemens' ability to provide state-of-the-art technology and sustainable solutions for the Indian Railways. The minor impact on the stock prices shows that market has already factored in this news.