- 3,000-crore diesel train engine factory in Bihar may be scrapped
- Railways believes that electric not diesel engines are the future
- Nitish Kumar has said he will meet with rail minister Piyush Goyal
The ministry is of the view that since electrification of railway tracks going ahead full steam, investment in diesel engines would not pay off in the coming years, reports said. Mr Kumar, who has handled the railways portfolio twice, disagrees.
Indian Railways is the third largest railway network in the world and full electrification of the 1.1 lakh-km tracks will take a long time, Mr Kumar argues. Till then, having fuel-efficient diesel engines will be cost-effective. Besides, once full electrification is done, India may even sell the diesel engines to neighbouring countries that are yet to modernize their railways, he said.
The project had been the brainchild of then railway minister Lalu Yadav, who wanted to build a state-of-the-art factory. But it went into cold storage and was later revived by the Narendra Modi government.
A few months ago, Mr Goyal, who was then the Union Power Minister, also put a 4000 MW ultra-power project in Bihar's Banka on hold, saying unless the state entered a power purchase agreement, the Centre would not sanction funds to start work. The project had been given to state in the Prime Minister's package announced just before assembly elections in 2015.