New Delhi: Indian Railways has issued a letter of award to the GE Global Sourcing India to manufacture 1,000 diesel locomotives for them in 10 years, an official said on Monday.

The locomotives will be manufactured by a joint venture company between the railways ministry and GE Global Sourcing India, which will set up a diesel locomotive factory at Marhowra in Bihar's Saran district.

The agreement entails the manufacture of 1,000 locomotives over a period of 10 years with the basic cost of the 1,000 locomotives pegged at Rs.14,656 crore.

The ministry will hold 26 percent equity in the JV company subject to a maximum of Rs.100 crore, a statement said.

Already, 226 acres of land for the project has been acquired to construct the factory in three years time at the cost of Rs.1,000 crore.

(IANS)