Thursday, August 15, 2024
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In a significant development, Indian Railways has canceled its Rs 30,000 crore tender for the production and maintenance of 100 Vande Bharat trains. The decision comes after the national transporter found the price quoted by the lowest bidder, Alstom India, to be too high. This information was reported by MoneyControl and confirmed by Olivier Loison, managing director of Alstom India.
Tender Cancellation Details
The tender, floated in 2022, aimed to invite companies to manufacture 100 aluminum body Vande Bharat trains within a seven-year period. Indian Railways had emphasized the preference for aluminum trains due to their lighter weight and higher energy efficiency compared to stainless steel alternatives. However, the tender process, which was opened on May 30, 2023, has now been scrapped.
Alstom India, the French multinational company, emerged as the lowest bidder with a quoted price of Rs 150.9 crore per train. However, Indian Railways was seeking a price closer to Rs 140 crore per train. With only two players participating in the bidding process, including a consortium comprising Swiss railway rolling stock manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, Indian Railways decided to cancel the tender. The railway authorities believe that reissuing the tender may attract more competitors, leading to more competitive pricing.
Alstom’s Response to Tender Cancellation
Alstom India, despite being the lowest bidder, expressed disappointment with the tender’s cancellation. A spokesperson for the company stated, “Alstom’s offer for the 100 Aluminium EMU’s was a very competitive offer, and the lowest when benchmarked against similar trains produced globally. With a 220kmph design speed, the manufacturing of these state-of-the-art aluminum trains requires substantial initial investments in the product design, being the first such product for the Indian market.”
The spokesperson further emphasized that Alstom had worked closely with Indian Railways to optimize its offer, aligning with the ‘Atma Nirbhar Bharat’ vision. The company highlighted that aluminum-based trains are the future of efficient and sustainable rail mobility in India. Alstom remains committed to supporting the realization of this vision, despite the current setback. The company is already advanced in the development of this product for the Indian market and looks forward to any new tenders that may arise in this space.
Future Prospects
So far, Indian Railways has not issued an official statement regarding the tender cancellation. However, the previous contract to manufacture 200 Vande Bharat sleeper train sets made of stainless steel was granted at Rs 120 crore per train. The cancellation of the current tender underscores Indian Railways’ ongoing efforts to balance cost-efficiency with cutting-edge technology as it continues to modernize its fleet.
