Kawasaki Heavy eyes India freight car output-paper

TOKYO, Aug 14 (Reuters) Kawasaki Heavy Industries Ltd. is in the final stage of talks with India's national rail operator to begin joint production of freight carriages in 2009, the Nikkei business daily reported on Tuesday.

The company is seen as favourite to win a contract for freight cars for a newly built freight railway in India, the paper said.

The contract is estimated to be worth up to 400-500 billion yen (.4-4.2 billion), and Kawasaki Heavy would produce 1,900 freight cars over 15 years from the end of 2009, the Nikkei said.

The company will invest 5-10 billion yen for a controlling stake in a joint production venture with Indian Railways to be set up next spring, the daily said.

Kawasaki Heavy is vying with Germany's Siemens AG and France's Alstom in India, a promising market for freight and high-speed passenger railway systems, the Nikkei said.

Reuters SBA VP0525