India allays concerns, says work on GE's locomotive factory on track

USfirm General Electric's plan to build a diesellocomotivefactoryin easternIndiais ontrack, the railwayminister said on Thursday, seeking to allay concerns that the state-controlled networkwas making changes to the contract.

Piyush Goyal's comments came after GE said this week that theIndian government's "Make in India"initiative would be undermined if the railway ministry went ahead with changes to a joint venture with the conglomerate.

GE had won a $2.6 billion contract in 2015 to supplyIndian Railways with 1,000 diesel locomotives.

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But the railwayministry said last week it wouldn't need diesel after all - hoping to save on fuel and maintenance costs - and suggested GE might want to make electric engines instead.