As per the announcement by Managing Director of Alstom India, Olivier Loison, Indian Railways has scrapped its ₹30,000-crore tender for the manufacturing and maintenance of 100 aluminium-bodied Vande Bharat trains.
Alstom India Committed to Future Projects with Indian Railways Despite Tender Cancellation Post Bidding Price Dispute
In an interview, Loison stated that while the tender is cancelled, Alstom India remains committed to supporting future railway projects due to its extensive local expertise as well as investments in industrial and human resources.
There was a bid of ₹150.9 crore per train from Alstom was said to be higher as per the tender panel, who suggested a cap of ₹140 crores. On the flipside, the company was aiming for approximately ₹145 crores per train set.
The tender was opened on May 30, 2023 and despite being the lowest bidder, the company’s quoted price did not meet the budget expectations of the Railways.
The delay however allows the Indian Railways more time in order to negotiate the prices better and also allow the bidders more time to prepare their manufacturing setups.
As per the CEO of Alstom, Henri Poupart-Lafarge, had previously defended the bid, claiming the company offered a competitive price considering their new aluminium technology.
In comparison, a prior contract for 200 stainless steel Vande Bharat sleeper train sets was awarded at ₹120 crores per rake.
Next Tender for Vande Bharat Trains to Feature More Bidders; Aluminium Trains Set for Early 2025 Debut
In order to ensure competitive pricing and timely production, next round of tendering will invite more bidders.
The key eligibility requirements of the bidders include having a research and development facility and the capacity to assemble at least five train sets annually.
Notably, it is by early 2025, that the Aluminium trains are expected to debut with the first sleeper variant by early 2025. These trains are lighter as well as more energy efficient.
The Vande Bharat trains use distributed traction power for better performance, featuring faster acceleration and improved passenger amenities.
