Investment opportunity stems from efforts of making rolling stock safer, faster and more efficient. The thrust on electrification is expected to give a spurt to electric locomotives, bringing down the fuel bill significantly, even as increasing investment in higher horse power locomotives will support longer rakes.
Indian Railways has produced the prototype 5,500 hp diesel locomotives (WDG5) which are already running as a pilot project in North Central Railway. This loco is developed by Diesel Locomotive Works (DLW), Varanasi, a production unit of Indian Railways.
If India becomes self-reliant in railway technology, it will have multiple effect including reduction in the equipment cost, easy availability of technology for upgradation of existing assets and in turn Indian Railways will be able to reduce the freight rates,