Kinet Railway Solutions, an Indo-Russian joint venture tasked with producing 1,920 semi-high-speed Vande Bharat train coaches, has initiated steps to secure funding for the first phase of its capital expenditure at its Latur facility in Maharashtra. The company is in discussions with several banks, including Russia’s Sber Bank, to obtain loans estimated at around $200 million, according to informed sources.
The financing strategy combines equity and debt to support initial investments, which will cover upgrades to the existing facilities in Maharashtra. Kinet, a partnership between Rail Vikas Nigam Ltd (RVNL) and Russian entities Metrowagonmash and Locomotive Electronic Systems (LES), has a shareholding structure of 25:70:5. It aims to address semi-high-speed train production under this collaboration.
Officials confirmed that Kinet has taken control of the Latur facility, constructed by RVNL, and plans to further enhance its capacity. For example, while the current shed can accommodate 16 coaches, modifications will enable it to house at least 24 coaches, necessitating additional investments. Material procurement for prototype construction is expected to begin soon.
Progress is also being made on train design, with mockups—scaled models used for evaluating design and functionality—under active discussion. The first prototype is anticipated by late 2026, with each train set costing approximately ₹120 crore. However, potential revisions to designs and timelines may impact costs and production schedules. The joint venture is seen as a key aspect of bilateral cooperation between India and Russia, with the project likely to be highlighted during President Vladimir Putin’s visit to India as an example of the nations’ robust diplomatic and technological ties.
Kinet Railway Solutions is an Indo-Russian joint venture focused on the design, manufacture, and maintenance of advanced railway systems, particularly semi-high-speed Vande Bharat coaches. The venture combines the expertise of India’s Rail Vikas Nigam Ltd (RVNL) and Russian engineering companies Metrowagonmash and Locomotive Electronic Systems (LES).
Kinet aims to revolutionize India’s railway sector by producing over 1,900 Vande Bharat coaches, leveraging state-of-the-art technology to enhance passenger comfort and safety. With facilities in India, including a plant in Latur, Maharashtra, the company is poised to contribute significantly to India’s railway modernization initiatives. Through strategic investments, technical collaborations, and innovation, Kinet Railway Solutions plays a key role in shaping the future of India’s rail infrastructure.
