Thursday, August 15, 2024
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In a significant development, the Indian Railways has cancelled a Rs 30,000 crore tender for the production and maintenance of 100 Vande Bharat trains. The decision comes after the national carrier found the price offered by the lowest bidder, Alstom India, to be too high. This information was reported by MoneyControl and confirmed by Olivier Loison, Managing Director, Alstom India.
Bid Cancellation Details
The tender floated in 2022 was intended to invite companies to manufacture 100 Vande Bharat trains with aluminium body over a seven-year period. The Indian Railways had emphasized the preference for aluminium 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 been cancelled.
Alstom India, the French multinational, emerged as the lowest bidder with a quoted price of Rs 150.9 crore per train. However, the 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 rolling stock manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, the Indian Railways decided to cancel the tender. The railway authorities believe that re-tendering could attract more competitors, leading to more competitive pricing.
Alstom’s response to tender cancellation
Alstom India, despite being the lowest bidder, expressed disappointment at the cancellation of the tender. A company spokesperson said: “Alstom’s bid for 100 aluminium electric trains was highly competitive and the lowest when compared to similar trains produced globally. With a design speed of 220 kmph, these aluminium trains require significant upfront investment in product design and are the first of their kind for the Indian market.”
The spokesperson stressed that Alstom has been working closely with the Indian Railways to enhance its offering, in line with the vision of Atma Nirbhar Bharat. The company highlighted that aluminium-based trains are the future of efficient and sustainable rail travel in India. Alstom remains committed to supporting the realization of this vision, despite the current setback. The company has already made significant progress in developing this product for the Indian market and looks forward to any new tenders that may arise in this area.
Future prospects
The Indian Railways has not yet issued an official statement regarding the cancellation of the tender. However, the earlier contract for manufacturing 200 sets of Vande Bharat stainless steel sleeper trains was awarded at Rs 120 crore per train. The cancellation of the current tender underscores the ongoing efforts by the Indian Railways to strike a balance between cost efficiency and cutting-edge technology as it continues to modernise its fleet.
