Central Government has approved setting up of two Rail Engine Factory in Bihar. These Locomotive Factories will provide Indian Railways with 800 electric locomotives of 12,000 HP each and a mix of 1,000 diesel locomotives of 4,500 and 6,000 HP over 10 years.
Railways would setup an Electric Locomotive Factory at Madhepura and Diesel Locomotive Factory at Marhowrah in Bihar.
Approval was given to start afresh the bidding processes for these projects. The estimated costs for setting up the Electric Locomotive Factory and Diesel Locomotive Factory, are 1293.57 crore ruppes and 2052.58 crore rupees respectively with limited equity contribution by Ministry of Railways.
The two factories are to be set up in Joint Venture with locomotive manufacturers to be selected through International Competitive Bidding The bids are to be finalized within three months of receipt of Cabinet approval.
Over a ten year period, the factories will provide Indian Railways with 800 electric locomotives of 12,000 horse power (h.p.) each and a mix of 1,000 diesel locomotives of 4,500 and 6,000 h.p. with high level performance guarantees of international level.