Economy, Domestic Economy

Iran in Talks to Buy 250 Diesel Locomotives From India

Iran in Talks to Buy 250 Diesel Locomotives From IndiaIran in Talks to Buy 250 Diesel Locomotives From India

Iran is in talks with India’s Ministry of Commerce and Industry to purchase 250 diesel locomotives, Chairman of the Islamic Republic of Iran Railways said.

“The contract for this purchase will be signed in less than six months,” Saeed Mohammadzadeh, who is also deputy minister of roads and urban development, said in a meeting with the Indian Ambassador to Iran Saurabh Kumar on Friday.

Two Indian firms signed an agreement back in September with the Industrial Development and Renovation Organization of Iran to finance the construction of a rolling stock manufacturing company.

Noting that the rolling stock manufacturing company is to be constructed in an underdeveloped area of Iran, IDRO’s Chairman Mansour Moazzami said the details of the agreement will be announced in the future.

Iran is moving fast to develop its rail sector to move away from road transportation. Iran’s Sixth Five-Year Development Plan (2017-22) has tasked the government with increasing the share of rail in cargo and passenger transportation from the current 12% and 8% to a minimum of 30% and 20% respectively by the end of the plan.

Last week, Russia signed a deal with Iran to finance €3 billion for joint manufacturing of 20,000 freight cars, 1,000 passenger cars, 350 locomotives as well as rail transportation equipment.

Another agreement worth €720 million was signed between IRIR and South Korean rolling stock manufacturer Hyundai Rotem earlier this month to produce 450 suburban rail cars in Iran.

Iran has another agreement worth €2.5 billion with Russia’s CJSC Transmashholding for joint production of rolling stock in Iran.

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