India’s state-owned Bharat Heavy Electricals Limited (Bhel) has offered to supply 100 diesel locomotives to Pakistan as part of a plan to modernise the country’s rail infrastructure, livemint.com – the online edition of Indian newspaper Mint – has reported.
If the public sector unit clinches the deal, it will be the first such order for an Indian manufacturer.
The proposed deal, valued at around Rs10 billion, comes against the backdrop of newfound affability between the two countries. Ties have picked up since last year and there has been a marked improvement in economic cooperation.
“China had earlier supplied around 1,000 locomotives to Pakistan, of which 800 have developed defects. Their railway network is down,” said a senior Bhel executive, requesting anonymity. “We made an independent offer of 100 locomotives to a Pakistani delegation which had come visiting recently. We are now working with their Ministry of Railways for the order to fructify. Once this happens, we may get more orders given the huge demand,” he said.
Rites Limited, an Indian Railways subsidiary, had earlier made a proposal to Pakistan to help improve its rail infrastructure.
“Ours is a proposal independent of Rites. Even Indian Railways sources around 50% of the equipment from us for manufacturing diesel locomotives,” the Bhel executive said. Trade is being seen as the driver of recent efforts to strive for better relations between the neighbours. These include India’s in-principle decision to allow Pakistani firms to invest in the country, the setting up of an India-Pakistan joint business council, and talks between the Reserve Bank of India and the State Bank of Pakistan to allow banks from both the countries to open branches in each other’s territory.
Another senior Bhel executive aware of the development said, “An offer has been made for 100 diesel locomotives to Pakistan during a recent visit of a delegation from there. Ours is an independent offer, given the expertise we have in diesel locomotive manufacturing. We are looking at more orders from Pakistan.”
Questions emailed to spokespersons for India’s ministry of external affairs and the Pakistan high commission on Wednesday remained unanswered at the time of going to press.
Published in The Express Tribune, June 30th, 2012.
COMMENTS (9)
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Every state will consider their national interest first before clinching the deal. China produces volume but their product has proved to be sub standard on many sectors. Pakistan must have incorporated certain clauses to take care of the future supply of spare parts/equipment and also the guarantee/ warranty of the engines. Rivalry and hate has led to a comment as a matter of shame on Pakistanis. Why a shame in trade purchase, Did India nor purchased onions from Pakistan when their prices were sky rocketing .Has India not imported/ importing sugar and many other goods from Pakistan, Trade decisions would be on merits only.
. 1. @zalim singh : China cheating Pakistan? Why cant Pakistan just tell China to take back their locomotives and give them a refund? . Really? You must be joking. . 2. @Mango man : BHEL is one of the top notch heavy equipment manufacturer in India, producing host of equipment like Diesel Engine driven Locomotives, Power plant equipment like turbines etc . I think that BHEL Manufactures Electric Locomotive for Passenger and Goods Trains and the Diesel Locomotives being manufactured by BHEL are Shunting Locomotives. . As such the Diesel Locomotives, if sourced by Pakistan Railways, from India will in all probabilities be manufactured-built by DLW Varanasi. . Cheers
BHEL is one of the top notch heavy equipment manufacturer in India, producing host of equipment like Diesel Engine driven Locomotives, Power plant equipment like turbines etc. Working conditions for railway equipment in Pakistan , should be very similar to that in India. Hence, experience of BHEL and other Indian cos. like RITES, RDSO involved in railways can provide their services , which is just right for Pakistan. India can contribute significantly for the up gradation of railway network in Pakistan, thereby improving its economy. RITES etc have deputed many engineers to various countries , including to UK for railway up gradation. People in right places of power in Pakistan hopefully will take decision after discounting the old mindset of hatred etc. This deal will be win-win for Pakistan railway and BHEL.
China cheating Pakistan? Why cant Pakistan just tell China to take back their locomotives and give them a refund?
cool
So pakistan railways running on their all friend "China's engine" has failed. China is known for sub standard products. SO finally pakistan have to look to india for their needs.
what a shame.. Pakistan hhad facility to produce itz own engines.. instead of reviving tht we looking to india to sell us engine....
Pakistan Railways running on Indian engines...What a shame for Pakistanis...