Alstom has released a Socio Economic Impact Assessment of Madhepura Electric Locomotive Private Limited (MELPL), its joint venture with Indian Railways, highlighting the project’s contribution to India’s economy and the industrial development of Bihar between FY20 and FY26. According to the study, the Madhepura electric locomotive project supported ₹60,000 crore in total economic output and generated ₹23,800 crore in Gross Value Added (GVA) for the Indian economy.
The project has also contributed significantly to the local economy. In FY24, MELPL’s GST contribution was equivalent to 1% of Bihar’s total GST collections, while its direct GVA represented 4.6% of Madhepura’s district GDDP. The project has helped strengthen the industrial base of a region traditionally dependent on agriculture.
The Madhepura facility manufactures WAG-12B Prima T8 electric locomotives with a power rating of 12,000 HP. The project has achieved nearly 90% localisation, supporting the development of an Indian supply chain for advanced railway equipment. India has consequently become the sixth country capable of manufacturing locomotives of this power category domestically.
The facility has sustained an average of 2,300 jobs annually across the country. Its direct workforce represents around 12% of all registered factory jobs in Madhepura district, according to the assessment. Olivier Loison, Managing Director India, Alstom, said the project has contributed to India’s rail modernisation while creating economic and social value in Bihar.
The locomotives manufactured at Madhepura are being deployed on India’s Dedicated Freight Corridors and support the country’s plans to increase the share of rail in freight transportation. Their deployment is expected to help reduce logistics costs and emissions from freight movement.
Vivek R Garg, Managing Director, MELPL & Services, Alstom, said the project’s success reflects the contribution of the local workforce and Bihar’s industrial potential. The project has also supported social development. MELPL’s initiatives have helped increase opportunities for women in technical and operational roles. The Madhepura facility also qualified the first female locomotive pilot in Alstom’s Asia-Pacific operations.
MELPL has invested more than ₹17 crore through CSR initiatives in Madhepura. These programmes have provided healthcare services to nearly 10,000 patients, introduced STEAM education to more than 2,000 students and supported the livelihoods of over 1,700 rural residents. Chhatrasal Singh, General Manager, East Central Railway, said the project has created value for both India’s freight mobility programme and communities in Bihar.
MELPL is a joint venture between the Ministry of Railways and Alstom and represents a major foreign investment in India’s railway sector. The project involves the manufacture and maintenance of 800 high-powered WAG-12B electric locomotives at the integrated manufacturing facility in Madhepura, supporting the country’s Make in India and Atmanirbhar Bharat initiatives.
