Media reports indicate that the Indian Railways invited requests for qualification (RfQ) from domestic and foreign firms for setting up two locomotive factories  at an investment of Rs 32,000 crore.

The Railways expects to award these two projects, which include setting up diesel locomotive factory and a electric locomotive factory, by December. The Railways planned to set up an electric locomotive factory at Madhepura and a diesel locomotive factory at Marhowra, both in Bihar.

The two private-public partnership (PPP) projects have reportedly attracted firms like GE, Chinese locomotive firm CSR, Bombardier, Alstom and Siemens.

Shortlisting of companies may be over by July-end after receiving the requests for qualification, reports suggest.  Fresh bidding for the projects was cleared by the cabinet in May 2013.

The two projects were announced in 2006 by the then Chief Minister Lalu Prasad. These were to be set up in partnership with private players, with the railways holding 26 per cent stake in each. However, the projects never took off, despite bidding being conducted several times.