Indo-French collaboration: Largest FDI project of Indian Railways

The Indian Railways and Alstom came together in the intention of transforming the freight transportation of India. In line with the collaboration, the MELPM-Madhepura Electric Locomotive Private Limited has been established. MELPM will now manufacture 800 electric locomotives for freight services with the foreign investment of 3.5 billion Euros.

Highlights

• The locomotives including the bogies have been redesigned
• Under the agreement, around 10 locomotives are to be delivered by the end of 2019-20 financial year and 100 locomotives by the end of March 2021
• A factory along with township has been set up as part of the project in Madhepura, Bihar. The factory can manufacture 120 locomotives per year.
• More than 300 engineers from India and France are working on the project currently

Significance

• More than 90% of the parts of the locomotives are to be manufactured in India. This is being done under Make in India initiative
• The project under the Corporate Social Responsibility initiative will set up skill centers that will impart training to local people
• More than 50% jobs are allocated to the locals of the region.

Benefits

As the locomotives are 100% electrified it will not only bring down operational cost but will also reduce congestion faced by the railways