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An official statement said the Appointments Committee of the Cabinet approved Lohani's appointment.
Lohani belongs to the Indian Railways Service of Mechanical Engineers of the 1980 batch.
Mittal's resignation has been accepted, a Railway Ministry spokesperson said earlier.
Lohani's appointment came hours after Railway Minister Suresh Prabhu met Prime Minister Narendra Modi and offered to quit after a second train derailed in Uttar Pradesh in four days, injuring 74 people. Prabhu said Modi had asked him to "wait".