The Railways has signed two contract agreements with US-based GE and France-based Alstom to set up locomotive factories in Bihar’s Marhowra and Madhepura districts respectively. The contract, valued at ₹40,000 crore, is spread over 10 years.

The agreement was signed in the presence of Finance Minister Arun Jaitley, Railway Minister Suresh Prabhu and others including Sharad Yadav of Janata Dal (United) .

Speaking on the occasion, Prabhu said that the contracts for the factories, which will roll out energy-efficient locomotives, are being signed coinciding with the global climate change meet in Paris.

Henri Poupart-Lafarge, President, Alstom Transport, said the factory will create about 1,000 jobs within Alstom, and another 3,000 jobs in the ancillary units.

Jaitley said the transaction was a win-win for all stakeholders, and will bring immense benefits to the backward region of Bihar.

The diesel locomotive factory in Marhowra will manufacture and supply modern diesel electric locomotives of 4500 HP and 6000 HP (which in combination can operate as 9000 HP and 12000 HP multiple units).  The Madhepura factory will manufacture and supply modern electric locomotives of high horse power namely 12000 HP. 

Under the agreement, 1,000 diesel locos will be manufactured in 11 years at a basic cost of ₹14,656 crore and 800 electric locos will be manufactured at a basic cost of ₹19,904 crore. 

The cost of setting up factories is around ₹1,300 each.  Taking into account the cost of setting up factories and maintenance facilities, the two projects together are worth ₹40,000 crore.

Related Topics
comment COMMENT NOW