BHEL in Discussion with Global Majors to Set Up Locomotive Plant

BANGALORE, INDIA--September 15, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Bharat Heavy Electricals Limited (BOM:500103) (BHEL) (New Delhi) is planning to strengthen its position in the locomotive business by setting up a greenfield locomotive manufacturing project. The government-owned BHEL, which is India's largest power equipment manufacturer, has earmarked an initial investment of $225 million in the project. The proposal follows BHEL's decision to bid for a tender floated by Indian Railways for sourcing 660 electric locomotives at an approximate cost of $5.6 billion. BHEL has started discussions with several global locomotive and transportation giants for forming a joint venture. Prospective partners include: Alstom (EPA:ALO), Mitsubishi Corporation (OTC:MSBHY) and Toshiba Corporation (OTC:TOSBF).

Other companies featured: Itochu Corporation (TYO:8001), General Electric (NYSE:GE), Siemens AG (NYSE:SI)