Make in India: Bihar CM writes to Goyal on why he bats for diesel locos

Bihar Chief Minister Nitish Kumar is keen to be a beneficiary of the 2.6 billion-dollar deal between the Railways and General Electric, reports NDTV. The deal which was touted to be a great victory of Modi and the BJP, came under a cloud recently when Piyush Goyal who had recently take over as the new Railways Minister talked about cutting down on diesel, and revolutionising travel through electric vehicles.

However, Goyal put to rest any doubts regarding the project after he announced that the project won't be cancelled. However, he is simultaneously looking at ways to electrify the railways instead of using diesel.

In a letter to Goyal, Bihar CM Kumar who is batting for the project, has stated that  "the utility of diesel locos would continue to [be] of substantial importance because of practical and strategic reasons"

It said,"Bihar is an important stakeholder and is concerned for loss of investments, many direct and indirect jobs... and damage to investment climate in the state." The letter was sent on Wednesday after Goyal met with GE's top executives in New Delhi.

The deal, which is the first ever 'Make in India' project to come to force, was signed in 2015. It was seen as a big win as it is one step closer into developing Bihar, one of the most underdeveloped states in the country.

However, GE does not make electric locomotives. The NDTV report said that GE had stated that if India violated the contract, it could find itself stuck with considerable penalties.

The factory is looking for only 300 people who will be directly involved in the work process. However, the locals believe that once the production comes to full force, thousands more will be employed, Anil Singh, a local farmer told the news media group.

About 70 percent of the factory is being constructed on the land acquired from farmers. The factory is to become operational from Mach 2018.

Goyal met with GE Vice President John Rice last week and confirmed that the contract will go on as planned. "Our government does not make any sudden decisions in policy, we take considered decisions," he said.

The Railway Minister said that he wants to explore cost-cutting methods with GE, so that the sector is able to come closer to its electrification goal. In his letter, the Bihar Chief Minister cited his own experience as the country's railways minister. "As former Railways Minister, I believe that the utility of diesel locos would continue to [be] of substantial importance because of practical and strategic reasons," he said.