The Vande Bharat project has hit a significant roadblock as Indian Railways has canceled a ₹30,000 crore tender that had been awarded to the French engineering firm Alstom. This tender was intended for the production and maintenance of 100 aluminum-bodied Vande Bharat train sets over the next 35 years.
Concerns arose from the tender panel about the unexpected nature of Alstom’s initial offer. As a result, Indian Railways began negotiations to reduce the cost to ₹140 crore per train set. However, Alstom countered with a final offer of ₹145 crore per train set.
The Tender:
The tender was issued for the manufacturing and maintenance of 100 aluminum-bodied Vande Bharat train sets over 35 years. Bids were invited in June 2022 and opened in February 2023, with Alstom being awarded the contract. The only other successful bid came from a consortium of the Swiss company Stadler Rail and Hyderabad-based Medha Servo Drives. Alstom proposed ₹150.9 crore per train set, while Medha’s bid was higher at ₹169 crore per train set.
Perspective from Railways:
Sudhanshu Mani, former General Manager of Integral Coach Factory and the creator of the Vande Bharat train, expressed disappointment, noting this is the second failed attempt to secure a manufacturer for aluminum-bodied trains. The first attempt was made in 2017-18 when a tender for manufacturing 20 such train sets was floated but didn’t materialize.
Mr. Mani explained that if the tender had been successful, Alstom would have partnered with Indian companies to set up a facility to produce the necessary components for the aluminum train bodies. This move would have encouraged companies to invest in local manufacturing, ultimately lowering the cost of producing these trains. He warned that canceling this tender delays the project by several years, calling it a “retrograde step.” He believed Indian Railways should have continued negotiations to settle on a reasonable price.
Vande Bharat Trains:
Vande Bharat Express is a semi-high-speed train with a maximum operational speed of 160 km per hour. The primary goal of the Vande Bharat project is to enhance connectivity and reduce travel time between major cities. Additionally, these trains are more energy-efficient than traditional trains, offering environmental benefits.