Lalu Prasad and (below) a diesel locomotive. Telegraph pictures

Chhapra, Jan. 28: The economic downswing of Indian Railways has spelt doom for most of the projects started by former railway minister Lalu Prasad in Bihar.

The decision of the railways to shelve all its projects which were under the PPP (private-public partnership) mode has hit two major projects, including one in Saran, the parliamentary constituency of the RJD chief.

The proposed rail diesel locomotive factory at Marhaurra in Chhapra, to be built at a cost of Rs 2,000 crore, is among the projects affected. Also hit is the proposed electric locomotive factory in Madhepura, a parliamentary seat which Lalu Prasad twice represented, for which the investment proposed was Rs 1,500 crore. Both these factories were put in the PPP mode during Lalu Prasad’s era as railway minister.

Marhaurra subdivision falls under Saran Lok Sabha constituency. According to railway sources, a US-based company initially showed interest in investing in these two projects but later withdrew on the pretext of rising costs. However, despite the setback, Lalu Prasad can have the satisfaction of having two rail projects see the light of day. One is the wheel factory located in Saran, which is near completion. The other is the coach maintenance factory at Harnaut in Nalanda district, which was initially started by Nitish Kumar during his tenure as railway minister. However, Lalu Prasad got the cost revised and ensured work progressed there.

Gloom descended on Marhaurra as people learnt about the railway decision.

Lalu Prasad had started the diesel locomotive project in October 2007 at Patedhi in Marhaurra. Over 220 acres of land was acquired and 1,800 acres are yet to be acquired. The compensation money for 70 acres has been paid. Marhaurra was once an industrial township boasting of factories of companies like Morton Confectionary, Kawnpur Sugar Mill and Saran Engineering. But with the passage of time and financial constraints, it slowly became the graveyard of factories as one by one locked their gates.

Marhaurra MLA Jitendra Rai, who belongs to the RJD, blamed railway minister Mamata Banerjee for the latest blow, saying the Bengal leader was bent upon aborting all projects initiated by Lalu Prasad.

Balendra Mahto, whose four bighas of land was acquired for the project, has termed the decision “unfortunate”. Residents said an agitation was the only way out. “All factories have already been shut down. People of the area were identifying themselves with the railway factory but they now feel deceived. Agitation is the only solution,” said Dr NK Singh, a local resident.