Indian Railways Abruptly Cancels Rs 30,000 Crore Tender For 100 Vande Bharat Coaches: Find Out Why?


Rohit Kulkarni

Rohit Kulkarni

Aug 17, 2024


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.


Rohit Kulkarni
Rohit Kulkarni
  • 1141 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online