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Bihar will get 1st big FDI in railways

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Railway minister Suresh Prabhu has finally given the go-ahead to the long-stalled, big-ticket foreign direct investment (FDI) projects to set up state-of-the art diesel and electric locomotive manufacturing plants in Bihar .

  • This is the the first major FDI in rail projects.The projects, closely monitored by the PMO.
  • It was the first big ticket project under ‘Make in India‘ initiative in the public transporter, GE and Alstom .


  • Location : Marhora and Madhepura.
  • Outlay :  Rs 40,000 crore.

Majority Partner :

Alstom, Bombardier and Siemens

Marhora unit :

Rs 20,000-crore diesel locomotive factory at Marhora will be open.IGE and EMD are one of which would be the private partner for the Marhora unit.

  • GE has emerged as the lowest bidder for the Rs 1,200 crore Marhora diesel locomotive factory.
  • It will manufacture about 1,000 diesel-electric locomotive in ten years, that is 100 locomotives annually

Madhepura Unit :

  • Madhepura locomotive plant will manufacture 800 electric locomotives of 12,000 horse power over 11 years.
  • French major Alstom has the lowest bidder for the Rs 1,000 crore Madhepura electric locomotive factory.

Key facts :

  • It will set up two maintenance sheds at Nagpur and Sharanpur.
  • The two projects are among the top eight infrastructure projects being monitored by the Prime Minster’s Office.Railways will have 26 per cent equity while the global players will have 74 per cent equity in each of the plants.