- Marking the first big FDI in the railway sector, the Indian Railways signed Rs 40,000-crore contracts with GE and Alstom to set up two locomotive plants in Bihar with a view to boosting manufacturing and employment in the state.
- Terming it as the “first major” manufacturing investment in Bihar, finance minister Arun Jaitley said setting up of diesel and electric locomotive factories will benefit farmers.
- The electric locomotive factory will be set up at Madhepura and the diesel one at Marhowrah in Bihar.
- This is the biggest public-private-partnership project of the national transporter and one of the biggest for India, Jaitley said.
- The direct investment to set up factories is around Rs 4,000 crores.
- The projects involve manufacturing of 1,000 diesel locomotives and 800 electric locomotives over the next 10 years.
- Railway minister Suresh Prabhu said the two factories would set off largescale vendor-development in ancillary industries for the factories and those industries would then be part of the global supply chain for world class locomotive manufacturing.