High Biding Price: Railway Drops Tender For 100 Vande Bharat Trains: Report (Photo @Aditya_Hujband)
Amid reports of the French company Alstom going to build 100 Vande Bharat trains with sleeper coaches, Olivier Loison, Managing Director of the firm said that the Railway has cancelled its Rs 30,000-crore tender for manufacturing and maintenance of 100 aluminium body Vande Bharat trains.
In an interview with Moneycontrol, the managing director of the company stated that they are committed to supporting the realisation of this vision with local knowledge and investments in industrial and human capital over the years when the opportunity arises.
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The media house reported that the cancellation of the tender was due to the conflict over the bidding price as the French company’s price of Rs 150.9 crore per train was higher against the Railway officials’ cap of Rs 140 crore. The company, however, wanted to secure the deal at around Rs 145 crore per train set. Alstom was the lowest bidder for the project and was set to build around 100 Vande Bharat trains.
According to a railway official, the cancellation of the contract would help the department to get enough time for the best price, and the bidders can also be better prepared to set up adequate manufacturing units, the media house quoted the official.
According to another official, the competition in the price rate was essential for the best price, noting that the next round of tender would invite multiple players to ensure timely production of the train sets. The official also elaborated on the eligibility norms to qualify for the tender which consists of setting up a research and development (R&D) facility to ensure that they can manufacture a prototype with the capacity to assemble at least five train sets a year.
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It is reported that the Railway anticipated at least five bids for the tender, including German major Siemens in partnership with Bharat Earth Movers Limited (BEML), Russia’s Transmashholding and Rail Vikas Nigam Ltd. The winning bidder would receive Rs 13,000 crore upon delivery of the train sets while the remainder of Rs 17,000 crore would be paid for maintenance over 35 years, as per the terms of the contract.
The Vande Bharat, a popular semi-high-speed train consisting of 16 self-propelled coaches is used for passenger operation. The train comes with faster acceleration and deceleration compared to loco-hauled trains, making it faster to slow down and reach the top speed. The train also comes with enhanced seating, an anti-bacterial system in the air conditioning, and with state of the art facilities.
