Ahead of polls government expediting Rs. 42,000 crore railway locomotives unit project in Bihar.

Ahead of the Bihar elections, the government is trying to expedite the much-delayed order for setting up two manufacturing units for railway locomotives that will attract an investment of Rs. 42,000 crore in the state and two international majors are leading the race for it. According to people close to the development, US-based GE has emerged the best bidder for diesel locomotives manufacturing plant proposed to be set up at Marhowra, and French major Alstom is leading the race for setting up the manufacturing unit for electric locomotives, making these projects the first instance of major foreign direct investment in Railways. "The projects have languished for almost 10 years now, but we are confident of awarding them by the end of September The interest shown by foreign companies was very encouraging. This will attract foreign investment and give the railways a big boost," a senior executive from the Railway Board, which is handling the tender, told ET.