IR hopes to complete the projects as public-private partnerships and is investing Rs 13bn ($US 249.9m) in Madhepura which will produce electric locomotives. General Electric (GE), Alstom, Bombardier, and Siemens are all competing for the contract.
A joint venture between GE and Bharat Heavy Electricals is competing with Electro-Motive Diesel to produce diesel locomotives at Marhaura where IR is investing Rs 20.25bn.
IR estimates that it will require 800 electric and 1000 diesel locomotives from the factories for passenger and future freight services on the two dedicated freight corridors. These contracts could be worth up to $US 13bn.