A joint venture between Alstom and Indian Railways has supported an estimated 60,000 crore INR (5.4 billion EUR) in economic output across India between Financial Years 2020 and 2026, according to a new socio-economic impact assessment conducted with Dun & Bradstreet.
Madhepura Electric Locomotive Private Limited (MELPL) operates an electric locomotive manufacturing facility in Madhepura, Bihar. The study examines the economic and social impact of the project since its establishment.
According to the assessment, the project generated or supported 23,800 crore INR in Gross Value Added (GVA) across the Indian economy during the period covered.
The facility has also become a significant contributor to the economy of Madhepura and Bihar. In Financial Year 2024, MELPL’s GST contribution was equivalent to 1% of Bihar’s total GST collections, while its direct GVA represented 4.6% of Madhepura’s Gross District Domestic Product (GDDP).
Manufacturing
MELPL was established as a joint venture between the Ministry of Railways and Alstom to manufacture and maintain 800 WAG-12B electric locomotives for Indian Railways.
The 12,000-horsepower locomotives are manufactured at the Madhepura facility and are intended primarily for freight operations.
The project has achieved a localisation rate of almost 90%, according to Alstom. This has supported the development of domestic suppliers and manufacturing capabilities for high-powered electric locomotives.
The assessment estimates that the project has supported an average of 2,300 jobs each year across India. At the Madhepura facility, its direct workforce accounts for 12% of all registered factory jobs in the district.
The development has also contributed to a shift in Madhepura’s economic profile, with industrial activity expanding alongside its established agricultural base.
Freight Rail
The WAG-12B locomotives manufactured at Madhepura are being deployed on India’s Dedicated Freight Corridors.
The project is therefore linked to India’s wider plans to increase the share of freight transported by rail. The National Rail Plan has set a target of raising rail’s freight modal share to 45%, with increased electrification and freight capacity intended to reduce logistics costs and emissions.
Olivier Loison, Managing Director India at Alstom, said:This JV is a landmark moment in India’s rail modernisation story and we are honoured to be a part of it. The report showcases not only the business and economic impact but also the human value creation this project has delivered so far. Our aspiration is to continue on this path of purpose and innovation that supports the government’s Viksit Bharat vision.
The project has also been associated with efforts to increase employment opportunities for women and skilled workers in Bihar.
According to the assessment, the Madhepura facility has provided formal employment opportunities to local women, including the qualification of the first female locomotive pilot within Alstom’s Asia-Pacific operations.
The company also said the facility has contributed to skilled workers returning to their home region for employment.
Local Communities
MELPL has invested more than 17 crore INR in corporate social responsibility initiatives in Madhepura, according to the study.
These programmes have included mobile healthcare services that have reached almost 10,000 patients, STEAM education programmes involving more than 2,000 students and initiatives supporting the livelihoods of more than 1,700 rural residents.
Vivek R Garg, Managing Director of MELPL & Services at Alstom, said:MELPL is at the forefront of not only industrial value creation but also deep human impact in Bihar. We congratulate the MELPL and Alstom team on building a credible ecosystem and meaningfully quantifying the impact through the study. This project has shaped and supported India’s freight mobility aspirations while also creating deep value for the communities and people at large.
The MELPL project represents a 3.5 billion EUR investment and is described by Alstom as the largest foreign direct investment in India’s railway sector.
The Madhepura facility is one of India’s integrated greenfield locomotive manufacturing sites and forms part of the country’s Make in India and Atmanirbhar Bharat programmes.
The socio-economic assessment covers the project’s contribution between FY2020 and FY2026 and evaluates its impact on employment, economic output, domestic manufacturing, supply chains and local community initiatives.
