Indian Railways has scrapped its Rs 30,000-crore tender for the production and upkeep of 100 Vande Bharat trains with aluminium bodies, announced Olivier Loison, Managing Director of Alstom India. “The tender has been cancelled. However, with our extensive local expertise and significant investments in industrial and human resources over the years, we remain well-positioned and dedicated to supporting this vision in the future, should the opportunity arise,” Loison stated.
Railway officials reported that the tender review panel deemed the bid of Rs 150.9 crore per train set from the French multinational company too high and requested a reduction to Rs 140 crore. Alstom India, however, aimed to finalize the deal at approximately Rs 145 crore per train set. Despite being the lowest bidder for the Rs 30,000-crore contract, which was opened on May 30, 2023, Alstom’s proposal was ultimately deemed too costly.
The contract’s cancellation allows Indian Railways additional time to secure a more favorable deal and enables bidders to better prepare for establishing necessary manufacturing facilities. Emails sent to the Ministry of Railways went unanswered at the time of publication. In July 2023, Alstom’s CEO Henri Poupart-Lafarge had stated that the company planned to use new aluminium technology for the project and argued that their bid was fair.
Previously, a contract to produce 200 stainless steel Vande Bharat sleeper train sets was awarded at Rs 120 crore per rake. Another official emphasized the importance of competition to obtain the best price and noted that the next tender would involve more participants compared to the two in the recent bidding process, ensuring a timely production of train sets.
The eligibility criteria for the tender required bidders to possess a research and development (R&D) facility capable of creating prototypes and the capacity to assemble at least five train sets annually. The only other bidder besides Alstom India was a consortium of Swiss company Stadler Rail and Hyderabad-based Medha Servo Drives, which offered around Rs 170 crore per train set. The successful bidder would have received Rs 13,000 crore upon delivery of the train sets, with the remaining Rs 17,000 crore allocated for maintenance over 35 years.
Officials had expected a minimum of five bids, including from Siemens with Bharat Earth Movers Limited (BEML), Russia’s Transmashholding, and Rail Vikas Nigam Ltd., but these companies withdrew due to failure to meet technical requirements. Bidding for the trains began in July 2022, with the original closing date of February 15, 2023, extended to February 23, 2023, due to a low response.
The aluminium train sets are designed to be lighter and more energy-efficient compared to stainless steel alternatives. Indian Railways aims to launch the first sleeper variant of the Vande Bharat trains by early 2025. Contracts have already been awarded for the manufacture of 102 chair car and 200 sleeper Vande Bharat train sets. The Vande Bharat is a semi-high-speed train with 16 self-propelled coaches, eliminating the need for a separate locomotive.
This distributed traction system enables quicker acceleration and deceleration compared to traditional loco-hauled trains. The Vande Bharat trains feature enhancements such as improved seating, an antibacterial air conditioning system, and can reach speeds of 160 kilometers per hour in just 140 seconds.
