US firm RailRunner has entered into a ten-year agreement with Indian firm Stone India to manufacture, operate and sell freight cars in India.

The deal will see Stone invest $32m (Rs150 crore) in establishing two Indian manufacturing units, the first of which will build 25 Railrunner freight cars per month, with the second providing 500.

Stone is in the process of obtaining technical clearance from Indian Railways, following which it will enter into an agreement to operate trains using RailRunner’s container-carrying intermodal cars.

The company expects the Indian freight market to support 50 operating RailRunner freight routes within five years.