Rlys issues contract award letter to produce Vande Bharat sleeper rakes

The Indian Railways has issued a letter of award (LOA) to Russian rolling stock company Transmashholding (TMH) to start the necessary preparations to manufacture 120 sleeper rakes of the Vande Bharat Express at Latur.

"With the issue of this LOA, the contract stands concluded," the letter issued by the railway stores executive director on March 29 stated.

The consortium of Russia’s largest rolling stock maker, Transmashholding (TMH), and Rail Vikas Nigam Limited (RVNL), a railway public-sector firm, has emerged as the lowest bidder for the Rs 58,000-crore tender for the production and maintenance of 200 Vande Bharat trains.

The consortium had a bid of Rs 120 crore per train with steel body, a senior official in the railways said here.

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Titagarh-BHEL quoting nearly Rs 140 cr per train is the second lowest bidder. Titagarh-BHEL consortium, which had quoted a higher price than TMH-RVNL, was also communicated by the railways to lower the price as a counter offer.

According to sources, both the bidders have accepted the offer and will soon communicate to the railways.

Now, TMH-RVNL has to deposit Rs 200 cr and Titagarh-BHEL to deposit Rs 160 cr as performance guarantee bond with the railways as the next step in the Vande Bharat project, worth Rs 50,000 cr with 35 years of maintenance provision.

As per the tender conditions, lowest bidder (L1) will be awarded to manufacture, supply and maintenance of 120 trains while remaining 80 trains would be awarded to produce to second lowest bidder provided that the bidder matches the price offered by the lowest bidder(LI).

The lowest bidder (L1) has to supply the first prototype train within two years.

As per the tender document, 120 trains would be made at the Latur facility of the Indian Railways. The remaining 80 trains would be manufactured at Chennai. The trains would be maintained at five-six government depots in cities like Delhi, Mumbai, Bengaluru, and Jodhpur, said the railway officials.

At present, Vande Bharat trains are operational with seating arrangement. The Vande Bharat sleeper rakes will have one First AC, three Second AC and 11 third AC coaches.