Alstom is negotiating with Indian Railways for an order of another 200 electric locomotives
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Alstom is negotiating with Indian Railways for an order of another 200 electric locomotives

The French train manufacturer Alstom is discussing with Indian Railways the possibility of receiving an additional order for 200 electric locomotives for its manufacturing complex in Madhepura, Bihar. Furthermore, the company uses this site to produce other railway products, a senior company official reported.

Vivek Garg, Managing Director of Madhepura Electric Locomotive Private Limited (MELPL) from Alstom, told PTI that the initial order for 800 electric freight locomotives will be completed by March 2028. In 2015, Indian Railways and Alstom established a joint venture to manufacture 800 electric locomotives in Madhepura, Bihar.

Garg noted that the company has already delivered 650 locomotives from the Madhepura facility, and the land was leased for 35 years. He added that the land will remain under the company's control until 2048–49, and its equipment and factory will continue to operate.

According to Garg, the contract stipulates the right for Indian Railways to place an order for another 200 locomotives. He also specified that under the agreement, Indian Railways and Alstom can use this facility to produce any rail-related goods. However, Garg emphasized that discussions with Indian Railways regarding the best use of the complex are ongoing, and a final decision has not yet been made.

The Ministry of Railways owns 26 percent of the joint venture MELPL. Alstom develops and implements systems, equipment, and services for the railway sector and is a global leader in integrated railway systems.

According to a new independent socio-economic impact study conducted in partnership with Dun & Bradstreet, the electric locomotive project under the 'Make in India' initiative contributed a total national economic output of 60,000 crore rupees during the financial years 2020–26. The report stated that the electric locomotive manufacturing plant in Madhepura, operated by MELPL, contributed 1 percent to the state's aggregate GST for the financial year 2024.

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162 Vande Bharat trains are becoming a source of revenue for Indian Railways
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162 Vande Bharat trains are becoming a source of revenue for Indian Railways

Vande Bharat trains are becoming a profitable venture for Indian Railways and are being viewed as a 'cash cow'. There has been a significant increase in the number of passengers traveling in these semi high-speed trains, with the AC Three Tier and AC Chair Car categories in particular providing consistent revenue to the railways. The popularity of these attractively designed trains is rapidly growing.

In view of the demand for Vande Bharat trains, Indian Railways is continuously expanding their network. These 'Made in India' semi-high speed trains offer passengers advanced amenities and excellent services with high speed. Since their launch in 2019, Vande Bharat has completed a total of one lakh journeys by March 2026, and more than 9.1 crore passengers have traveled on these trains so far.

A large increase in passenger numbers was recorded on the Vande Bharat network in the financial year 2026, where approximately 3.98 crore passengers traveled. This figure indicates a strong annual growth of 34% compared to the 2.97 crore passengers in the financial year 2025. The New Delhi-Varanasi corridor remains the busiest route in the Vande Bharat Express network, with over 73 lakh passengers having traveled there so far.

Looking at the financial performance data of the financial year 2025, the Vande Bharat train earned significant profits in two passenger classes: first, AC Three-Tier, and second, AC Chair Car. AC Three-Tier has maintained continuous earnings from the financial year 2023 to 2025, boosting long-distance Vande Bharat sleeper trains.

According to the revenue figures, AC Three-Tier earned a profit of ₹3,645.44 crore in the financial year 2025, which is higher than ₹2,501.07 crore in the financial year 2024 and ₹3,300.08 crore in the financial year 2023. Meanwhile, the AC Chair Car category registered a profit of ₹376.77 crore in the financial year 2025, compensating for the loss of ₹203.96 crore in the financial year 2024 and ₹297.62 crore in the financial year 2023. However, the general class incurred a heavy loss, while the First Class recorded a loss of approximately ₹48.77 crore during this period.

Vande Bharat trains are playing a crucial role in the growing demand for premium rail travel in the country. Currently, 162 Vande Bharat services are operating across the country, and the demand for them is driving the momentum of Vande Bharat schemes in India. In January of this year, Indian Railways launched the Vande Bharat Sleeper service with the aim of strengthening long-distance connectivity. Within the first three months of operation, this service carried 1.21 lakh passengers in 119 trips, while maintaining an occupancy rate of over 100%.

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