Vande Bharat: Russia’s TMH-RVNL consortium emerges lowest bidder

The consortium of Russia’s largest rolling stock maker Transmashholding (TMH), and Rail Vikas Nigam Limited (RVNL), a railway public sector firm, have emerged as the lowest bidder for the Rs 58,000-crore tender for produce 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. The consortium of state-run Bharat Heavy Electricals Ltd (BHEL) and Titagarh Wagons emerged as the second lowest bidder which quoted Rs 139.8 crore per train.

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

If the second lowest bidder refused to take up the contract, then the same offer would be extended to the third lowest bidder. If the third bidder refused to take the contract, then the contract for manufacturing the remaining 80 trains would be given to L1 bidder.

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 in Chennai. The trains would be maintained at five-six government depots in cities like Delhi, Mumbai, Bengaluru, and Jodhpur.

Of the Rs 58,000 crore for the entire project, Rs 26,000 crore is the upfront payment on the delivery of the trains, and Rs 32,000 crore will be paid to the winning bidder over a period of 35 years for the maintenance of these trains.

Other players in the race in the project include French rolling stock major Alstom and Swiss makers Stadler with India’s Medha, Indian makers BEML and German multinational Siemens.