New Delhi, March 11 (IANS): India will supply 18 metre gauge diesel electric locomotives to Myanmar to augment the locomotive fleet of the country's railways which will help meet increasing demand for passenger and freight traffic, an official statement said here on Friday.

“RITES is making all efforts to augment export of rolling stock manufactured at railway production units. Response from Southeast Asian markets is very encouraging,” said Rajeev Mehrotra, chairman and MD, RITES (a public sector enterprise under ministry of railways).

According to the statement, the contract was signed on March 4 in Myanmar's capital Nay Pyi Taw by S. B. Malik, director technical, RITES and U Thurein Win, MD, Myanmar Railways.

Also U Nyan Tun Aung, minister of rail transportation, Myanmar and Gautam Mukhopadhaya, ambassador of India to Myanmar were present during the event.

The supply contract of locomotives is a vital project being funded under an existing line of credit extended to Myanmar by the Indian government.

These locomotives will be manufactured by Diesel Locomotive Works, Varanasi with modern features like microprocessor controls, fuel-efficient engine and ergonomic cab design, the statement added.