American industrial company General Electric and French engineering firm Alstom have won contracts worth a combined $5.6 billion to modernise the Indian Railways, reported Reuters. GE will provide the railways with 1,000 diesel locomotives over the next 11 years, and will also invest $200 million in a plant and maintenance sheds, with the total deal being worth $2.6 billion. Alstom, meanwhile, will supply 800 electric locomotives to the railways and will also build a factory in Bihar, in a deal worth $3 billion.

The contracts are the largest to be given to foreign companies since India allowed 100% foreign direct investment in certain parts of its railways last year. GE’s deal is the largest that it has signed with the Indian government in the 113 years that the company has operated in the country, reported the BBC. India plans to spend $137 billion over the next five years to modernise the railways.