Marking the first big FDI in the railway sector, the Indian Railways today signed Rs 40,000-crore contracts with GE and AlstomBSE 0.31 % to set up two locomotive plants in Bihar with a view to boosting manufacturing and employment in the state.

Finance Minister Arun Jaitley said that Raiway plants in Bihar will boost manufacturing and jobs.Terming it as the ‘fist major’ manufacturing investment in Bihar he said, setting up of diesel and electric locomotive factories will benefit farmers.

He said it is a win-win situation for Bihar because one of the greatest challenges for India is to boost the economy of the state.

DIPP Secretary Amitabh Kant termed it as the biggest contract awarded by the Indian Railways to the private sector in its history.

“This contract will create jobs and bring state-of-the-art technology in the sector. It will drive manufacturing and Make in India,” Kant said, adding that “this will bring in FDI and create jobs besides development of backward region”.

Source: EconomicTimes