The two significant pacts, marking stepped up cooperation in the rail sector, were signed after talks between Prime Minister Narendra Modi and French President Francois Hollande.
Alstom and Indian Railways signed a 'shareholding agreement' for production of 800 electric locomotives at Madhepura in Bihar.
As per the agreement, the Madhepura factory will produce 800 electric locomotives with horse power of 12,000 each over a period of 11 years. The existing strength of electric locomotives is 6,000 horse power (HP).
Alstom will be responsible for setting of the factory, manufacturing of the locomotives as well as maintenance.
Also Read
Railways had decided in November to award the contract to Alstom for Madhepura electric locomotive project.
Production of locomotives with 12,000 horse power would be a quantum leap over the existing 6000 HP locomotives used for freight operations.
Under another agreement, France will extend its expertise to modernise Ambala and Ludhiana stations.
An expert team from France will come and study these two stations and accordingly a roadmap will be concretised based on its report, said a senior Railway Ministry official.