French train maker Alstom is seeking a follow-on order for 200 electric freight locomotives from Indian Railways for its manufacturing plant at Madhepura in Bihar, according to Moneycontrol. Vivek Garg, Managing Director of MELPL and Managing Director, Services, Alstom India, confirmed that the initial order of 800 electric freight locomotives will be completed by March 2028. The company has already delivered over 600 locomotives from the Madhepura facility, with the land parcel leased for 30 years extending through March 2046. As per Moneycontrol, discussions are currently ongoing with Indian Railways for the additional supplies, with the contract specifically allowing for such follow-on orders. The facility can also be utilized for manufacturing any product related to railways, with the Ministry of Railways holding 26 per cent equity in the joint venture company MELPL.
Currently, nearly 90% of the locomotive is locally sourced and only the wheels and axles continue to be imported, as reported by Economic Times. Talks are ongoing with Ramkrishna Forgings for wheel supplies, but these will be contingent on additional orders from Indian Railways. The facility can also be utilized for manufacturing any product related to railways, with the Ministry of Railways holding 26 per cent equity in the joint venture company MELPL. According to Moneycontrol, the Madhepura facility was structured around the 'Make in India' vision from day one, achieving nearly 90 percent indigenous localization and establishing India as one of only six countries capable of indigenously producing advanced high-horsepower locomotives.
The 'Make in India' e-loco project has supported a total economic output of ₹60,000 crore nationwide during financial years 2020-26, according to a new independent Socio-Economic Impact Assessment study conducted in partnership with Dun & Bradstreet, as reported by PTI. The electric locomotives manufacturing facility in Madhepura operated by MELPL has contributed 1 per cent of the state's aggregate GST in the financial year 2024. The facility's machinery and plant are expected to remain operational until 2048-49, ensuring continued economic benefits for the region. The land parcel has been leased to the company for 30 years, providing long-term stability for the manufacturing operations. According to Moneycontrol, MELPL's overall footprint delivers profound macroeconomic, operational and social impact, with over ₹17 crore invested in local community welfare.
Beyond the current contract, the Madhepura facility offers endless manufacturing possibilities for passenger trainsets, freight wagons, specialized sub-assemblies and localized components such as wheels and axles, as reported by Moneycontrol. The joint-venture framework provides the flexibility to repurpose the facility for a wide range of mobility solutions, with the plant built with world-class industrial layout, diagnostic tooling, test tracks and a highly trained workforce. The facility is ideally positioned to serve as a global manufacturing hub for exporting locomotives and rail equipment to international markets. MELPL plays a central role in driving India's freight rail revolution, with locomotives serving as primary workhorses along Dedicated Freight Corridors to support the National Rail Plan's vision of increasing rail's freight modal share to 45 percent.
Alstom develops and markets systems, equipment and services for the railway sector and is a world leader in integrated railway systems, according to PTI. The company established the joint venture with Indian Railways in 2015 to manufacture 800 electric locomotives in Madhepura, Bihar. The land parcel has been leased to the company for 30 years, ensuring continued operations until the end of the lease period. The original contract explicitly includes an option clause permitting Indian Railways to place a follow-on order for 200 additional locomotives, representing a key avenue for extending manufacturing operations at Madhepura. The facility's utility extends beyond locomotive manufacturing, with the contract allowing for diversification into other railway-related products, providing flexibility for future market demands.
