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Indian Railways cancels tender for 100 Vande Bharat trains
Industry News- Aug 13,24
Despite being the lowest bidder when the tender was opened on May 30, 2023, Alstom's bid did not meet the revised price expectations.
Indian Railways has cancelled its Rs 300 billion tender for the manufacture and maintenance of 100 aluminium-body Vande Bharat trains, as revealed by Olivier Loison, Managing Director, Alstom India, in an exclusive interview with the source.
"The tender has been cancelled. Nevertheless, with our extensive local expertise and investments in industrial and human capital, we remain committed to supporting this vision in the future if given the opportunity," Loison stated.
Railway officials indicated that the tender panel deemed Alstom's bid of Rs 1.50 billion per train set too high, suggesting a cap of Rs 1.4 billion. Alstom India, however, was aiming for a settlement around Rs 1.45 billion per train set. Despite being the lowest bidder when the tender was opened on May 30, 2023, Alstom's bid did not meet the revised price expectations.
An official noted that the cancellation allows Indian Railways more time to secure the best price and gives bidders a chance to better prepare their manufacturing facilities. The previous contract for 200 stainless-steel Vande Bharat sleeper train sets was awarded at Rs 1.2 billion per rake.
In July 2023, Alstom CEO Henri Poupart-Lafarge asserted that the company had offered a competitive price for the project. The contract for manufacturing 200 stainless-steel Vande Bharat sleeper trains was previously secured at Rs 1.2 billion per rake.
The next tender is expected to attract more competition to ensure better pricing. The current tender saw only two bidders: Alstom India and a consortium of Swiss manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, which bid around Rs 1.7 billion per train set.
Officials had hoped for at least five bids, including from Siemens in partnership with Bharat Earth Movers Limited (BEML), Russia's Transmashholding, and Rail Vikas Nigam Ltd. However, these companies withdrew due to failure to meet technical requirements.
Aluminium train sets are preferred for their lighter weight and energy efficiency compared to stainless steel. The Indian Railways aims to introduce the first Vande Bharat sleeper trains by early 2025.
To date, contracts have been awarded for 102 chair car and 200 sleeper Vande Bharat trains. These semi-high-speed trains, consisting of 16 self-propelled coaches, offer improved acceleration, enhanced seating, and anti-bacterial air conditioning, reaching speeds of 160 km/h in just 140 seconds.
(Money Control)
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