Bhopal: Madhya Pradesh's first diesel locomotive plant to manufacture environment friendly and fuel efficient railway engines will be set up in the neighbouring Sehore district.
"Daulatram Engineers in collaboration with US-based NREC have joined hands to set up multi-genset diesel electric railway engines, also known as 'green locomotives' unit at
Sherpur village near Bhopal with an investment of over Rs 200 crore," company's Managing Director CP Sharma told reporters.
President of National Railway Equipment Company, Steven L Beal, was also present on the occasion.
Madhya Pradesh Chief Minister Shivraj Singh Chouhan and Industries Minister Kailash Vijawrgiya will lay the foundation stone for the ambitious project on October 27 at Sherpur village, Sharma said.
The plant will be set up in a 50 acre land already acquired by the company.
"The joint venture has already bagged the order from Indian Railways and Chennai Metro to manufacture two such engines for them. These are currently being manufactured jointly by the company along with Diesel Locomotive Modernisation Works in Patiala," he said.
These two locomotives will be rolled by January next from the Patiala unit, Sharma said.
The next five locomotives will be rolled out from the new facility in next 18 months and is likely to generate direct and indirect employment to 1,800 persons.
The company foresees substantial demand for these types of engines which are not only environment-friendly but also fuel-efficient as they can be used for both freight and passenger trains.
The joint venture has set a target of manufacturing 200 units annually in the next five years time.
NREC is the largest independent locomotive builder in the world having six facilities in USA and Canada.