Cabinet nod to two rail engine projects in Bihar

New Delhi, May 1 (IANS) The union cabinet Wednesday revived two railway locomotive projects in Bihar by starting new bidding process, official sources said. The estimated cost of the two projects is over Rs.3,346 crore.

The proposals for an electric locomotive factory at Madhepura and a diesel locomotive factory at Marhaura in Saran district were revived as the request for bids for these two projects had lapsed.

The factories will provide 800 electric locomotives of 12,000 horse power (hp) and a mix of 1,000 diesel locomotives of 4,500 hp and 6,000 hp with high level performance over a 10-year period, officials said.

Estimated costs for setting up the electric locomotive factory is Rs.1,293.57 crore and for diesel locomotive factory Rs.2,052.58 crore, with limited equity contribution by the ministry of railways.

The two factories will be set up in joint venture (JV) with locomotive manufacturers to be selected through international competitive bidding (ICB), officials said.

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