Indian Railways has scrapped its ₹30,000 crore contract for the production and maintenance of 100 aluminum-bodied Vande Bharat trains. French company Alstom, which secured the contract in June 2023, was set to manufacture these advanced trains, but the agreement has been halted due to a pricing disagreement.
Background of the Tender
The decision to use aluminum-bodied trains was made to leverage their lighter weight and greater energy efficiency compared to traditional stainless steel models. The first batch of these trains is anticipated to be sleeper variants, scheduled for deployment by early 2025.
Bidders and Bidding Process
The tender attracted two bidders: Alstom India and a consortium comprising Swiss firm Stadler Rail and Hyderabad’s Medha Servo Drives. Alstom emerged as the lowest bidder, offering ₹150.9 crore per train set, while Medha quoted ₹169 crore. To qualify, bidders needed a research and development (R&D) facility capable of producing prototypes and assembling at least five train sets annually.
Reason for Cancellation
Railway officials found Alstom’s bid of ₹150.9 crore per train set excessively high and requested a reduction to ₹140 crore. Alstom, however, insisted on a final price of around ₹145 crore. As a result, the contract was canceled to allow Indian Railways more time to negotiate a better price and encourage more bids.
Implications and Future Plans
The cancellation gives Indian Railways the chance to revise the tender conditions and attract additional bidders. The focus will be on maintaining high standards for the Vande Bharat trains, known for their semi-high-speed capabilities, improved passenger comfort, and energy efficiency.
The Railways had previously awarded a contract for 200 stainless steel Vande Bharat trains at ₹120 crore each. The revised tender will aim to secure the best price and technology for the aluminum versions, continuing the modernization of India’s rail transport.
