MELPL, Alstom’s joint venture with Indian Railways, electric locomotives manufacturing facility at Madhepura, Bihar; ₹60,000 crore nationwide economic output

MELPL, Alstom’s joint venture with Indian Railways supports ₹60,000 crore as economic output while contributing to Bihar and India’s economy

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A new independent Socio-Economic Impact Assessment study conducted in partnership with Dun & Bradstreet reveals the landmark ‘Make in India’ e-loco project has supported a total economic output of ₹60,000 crore nationwide between Financial Years 2020-26.

The electric locomotives manufacturing facility in Madhepura operated by MELPL has become a cornerstone of Bihar’s economy, contributing 1% of the State’s aggregate GST 1 in the Financial Year 2024 and accounting for 4.6% of Madhepura’s district Gross District Domestic product (GDDP).

19 August 2026 - Alstom, a global leader in smart and sustainable mobility has released a Socio Economic Impact Assessment study for Madhepura Electric Locomotive Private Limited (MELPL)- its joint venture with Indian Railways. The study reveals the transformative impact of MELPL on both Bihar’s regional economy and India’s national infrastructure. It details how India’s largest Foreign Direct Investment in the rail sector has supported economic growth and social change between FY20-FY26.

Commenting on the e-loco project and its impact, Olivier Loison, Managing Director India, 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.”

Sharing his views on MELPL’s impact and the report findings, Shri. Chhatrasal Singh, General Manager, East Central Railways, 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.”

National Output: The project supported a total economic output of ₹60,000 crore and a Gross Value Added (GVA) of ₹23,800 crore in the Indian economy.

Regional Economic Shift: In FY24, MELPL’s GST contribution was equivalent to 1% of Bihar’s total GST collections, while its direct GVA constituted 4.6% of Madhepura’s District GDDP, transitioning the local economy from being primarily agrarian to a growing industrial hub.

‘Make in India’ success: Achieving nearly 90% localisation, the project nurtured a robust domestic supply chain and established India as the sixth country in the world capable of domestically producing advanced 12,000 HP e-locomotives.

Job creation: The facility has sustained an average of 2,300 jobs annually nationwide, with its direct workforce accounting for 12% of all registered factory jobs in the Madhepura district.

A national engine for freight decarbonization

Beyond economic metrics, the report highlights MELPL’s role as a critical enabler of India’s environmental goals. The WAG-12B Prima T8 locomotives manufactured at Madhepura site are the workhorses of India’s Dedicated Freight Corridors. Their deployment is critical for advancing the National Rail Plan’s goal of increasing rail’s freight modal share to 45%, significantly reducing logistics costs and India’s carbon footprint.

Speaking at the release of the report, Vivek R Garg, Managing Director MELPL & Services, Alstom, said, “We came to Madhepura with a vision to build world-class locomotives, but the story we are proudest to tell today is one of partnership and shared prosperity with the people of Bihar. The skill, dedication, and passion of our team in Madhepura is the true engine of this success. This facility and the findings of this report are a testament to the immense talent within Bihar and the state’s potential as a modern industrial powerhouse. We are deeply committed to our journey here and will continue to foster local talent and contribute to Bihar’s bright future.”

Social upliftment: empowering local communities

The report highlights the project’s success in driving social change on the ground:

Empowering women in non-traditional roles: The project has championed gender inclusion, providing formal employment to many local women. Notably, the plant qualified the first female locomotive pilot in Alstom’s Asia-Pacific operations, shifting household norms and inspiring a new generation.

Attracting skilled workers: The presence of a world-class industrial facility has created high-quality jobs that have attracted skilled workers to return to their home region, showing improvement in the past migration trends.

Investing in health and education: Through its corporate social responsibility (CSR) initiatives, MELPL has invested over ₹17 crore in Madhepura. This includes providing healthcare to nearly 10,000 patients via mobile healthcare solutions, delivering modern STEAM education to over 2,000 students to prepare them for future jobs, and supporting the livelihoods of over 1,700 rural residents and much more.

MELPL is a €3.5 billion joint venture between the Ministry of Railways (Government of India) and Alstom, representing the largest foreign direct investment (FDI) in India’s railway sector. Tasked with manufacturing and maintaining 800 high-powered electric locomotives (WAG 12B - 12,000HP Prima T8). Designated by Indian Railways as WAG-12B, these locomotives are built at one of India’s largest integrated greenfield manufacturing facilities at Madhepura, Bihar. In line with the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, Alstom has progressively achieved over 90% localisation, reinforced India’s domestic manufacturing prowess and becoming the 6 th nation globally to build such powerful locos indigenously.

The full report can be downloaded here

Alstom is the only multinational sustainable mobility provider in India, to have a comprehensive portfolio of offerings to meet customer specific needs and continues to be a strategic partner in supporting India’s rail revolution. With six industrial sites and five major engineering centres, the company caters to domestic as well as international project needs with its world class rolling stock, components, signalling and services solutions. Fully aligned with the country’s vision of Make-in-India and Atmanirbhar Bharat, Alstom remains deeply committed to strengthening its local sourcing and supply chain ecosystem.

ALSTOM™ and Prima T8™ are protected trademarks of the Alstom Group.

1 Goods and Services Tax

Madhepura socio economic impact assessment report

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