Indian Railways has issued a letter of award to GE Global Sourcing India to manufacture 1,000 diesel locomotives for them in 10 years, an official said on Monday.
The locomotives will be manufactured by a joint venture company between the railways ministry and GE Global Sourcing India which will set up a diesel locomotive factory at Marhowra in Bihar's Saran district.
The agreement entails the manufacture of 1,000 locomotives over a period of 10 years with the basic cost of the 1,000 locomotives pegged at Rs.14,656 crore.
The ministry will hold 26 percent equity in the JV company subject to a maximum of Rs.100 crore, a statement said.
Already, 226 acres of land for the project has been has been acquired to construct the factory in three years time at the cost of Rs.1,000 crore.
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