Developing diesel locos because we have just 33% of electrified route at present in the country, and rest 77% is still on diesel electric traction. IR had never thought about converting the branch lines or other non profit routes except main lines etc. into ET, untill it realized , that they have been over spending in buying diesel, where as India has enough coal to generate electricity for railways. So, for Indian Railways, its cheaper to deploy ET than to buy diesel from foreign market. Now IR is going to keep a target around 4500 RKM to be electrified in every budget or five year plan.