RVNL-Transmashholding JV emerges lowest bidder for 200 Vande Bharat trains

New Delhi, India (Urban Transport News): Indian Railways has opened financial bids for Rs 54,000 crore contract package floated for “Manufacturing cum Maintenance of 200 Vande Bharat Trainsets including Up-gradation of the Government Manufacturing Units & Trainset Depot" on March 1, 2023 in New Delhi.

As per financial bids result, a joint venture (JV) of Rail Vikas Nigam Limited (RVNL) with Russian Rolling Stock manufacturer CJSC Transmashholding energed as lowest bidder (L1) by beating other four bidders/consortias such as Alstom Transport, Siemens-BEML JV, Medha Servo Drives-Stadler Rail JV and Titagarh Wagons-BHEL JV.

"The RVNL-Transmashholding consortium had a bid of Rs 120 crore per Vande Bharat train and is looking to manufacture all 200 steel Vande Bharat rakes while the consortium of Bharat Heavy Electricals Ltd (BHEL) and Titagarh Wagons emerged as the second lowest bidder (L2) with a bid of Rs 139.8 crore per train," said sources.

The financial status of each bidder is as under:-

• RVNL-Transmashholding-Mytschi JV: Rs 120 crore per train (Rs 24,000 crore) - L1
• Titagarh Wagons-BHEL JV: Rs 139.8 crore per train (Rs 27,960 crore) - L2
• Siemens-BEML JV: Rs 145 crore per train (Rs 29,000 crore) - L3
• Alstom Transport: Rs 164 crore per train (Rs 32,800 crore) - L4
• Medha Servo Drives-Stadler Rail JV: Rs 165 crore per train (Rs 33,000 crore) - L5

The first lowest bidder (L1) RVNL-Transmashholding-Mytschi JV is comprises of three companies namely M/s Joint Stcok Company Metrowagonmash (70%), M/s Rail Vikas Nigam Limited (25%) and M/s Joint Stcok Company Locomotive Electric System (5%).

The second lowest bidder (L2) Titagarh Wagons-BHEL JV is comprises of two Indian companies Titagarh Wagons Ltd (55%) and Bharat Heavy Electricals Ltd (45%). Titagarh Wagons has manufacturing capacity of 450 rolling stock cars per year.

"The emergence of Russia’s Transmashholding (TMH-RVNL) as the lowest financial bidder for 200 Vande Bharat trains and the consortium of BHEL and Titagarh Wagons as the second lowest bidder presents a challenge for the timely production of the Vande Bharat trains," commented Sudhanshu Mani, former general manager of Integral Coach Factory, Chennai.

"Russia’s Transmashholding has no footprint in India and it will not be an easy task for them to deliver these trains in time. It would also be interesting to see if BHEL Titagarh accepts this L1 price for 80 trains in ICF," he added.

According to terms of this contract package, Indian Railways will award manufacturing, supply and maintenance of 120 trains to the lowest bidder (L1). The lowest bidder will manufacturer the trains at the Latur facility of the Indian Railways. While the remaining 80 trains would be manufactured at Chennai and awarded to the second lowest (L2) bidder, provided the price offered by the L1 was matched.

"As part of the tender, the trains would be maintained at 5-6 maintenance depots in cities like Delhi, Mumbai, Bengaluru, and Jodhpur. The lowest bidder (L1) was expected to supply the first prototype train within two years," said sources.

If the L2 bidder refused to take up the contract, the same offer would be extended to the third lowest bidder. The contract for the remaining trains would be awarded to the L1 bidder if the other bidders don’t match the lowest price offered.

The bids for this contract package were opened on 1st December 2022, with five entities in race for the Rs 58,000-crore contract to manufacture 200 Vande Bharat trains and maintain them for the next 35 years.

While Rs 26,000 crore is the upfront payment on the delivery of the trains, Rs 32,000 crore will be paid to the winning bidder over a period of 35 years for the maintenance of these trains.

Vande Bharat Trains is a engine-less semi-high-speed train with 16 self-propelled coaches. It works on what is called a distributed traction power system, which is increasingly becoming the norm the world over for passenger operations.

At present a total of 10 Vande Bharat trains are being operated on various routes of Indian Railways across the country.