India, July 1 -- In the midst of political turmoil over the railway fare hike, an intense fight is going on in higher echelons of bureaucracy over the selection of bidders for two locomotive factories that then Railway Minister Lalu Prasad Yadav had announced for his parliamentary constituency in Bihar in 2009. In the 2009 Railway Budget, Lalu had announced setting up of one electric locomotive factory at Madhepura and another diesel loco factory in Marhowra on PPP model.

The process of selection of bidders has pitched two key Ministries - Railways and Finance - against the Planning Commission. Top officials of Railway Board and Finance Ministry have objected to the proposals of Plan panel to change the Cabinet-approved bidding process a...