The Indian Railways has cancelled a substantial tender worth Rs 30,000 crore for manufacturing and maintaining 100 aluminium-body Vande Bharat trains. The tender was initially awarded to Alstom India.
Confirmation and Future Outlook
Alstom India’s Managing Director, Olivier Loison, confirmed the cancellation. According to a report in Moneycontrol, Loison stated that despite the cancellation, Alstom India is prepared to support the vision of the Indian Railways in the future if required.
Pricing Dispute
The tender panel highlighted that the bidding price from Alstom India of Rs 150.9 crore per train was deemed too high. The panel recommended capping the price at Rs 140 crore per train set. Alstom India countered with a proposed price of Rs 145 crore per train set. Despite being the lowest bidder, Alstom India aimed to manufacture all 100 Vande Bharat rakes. The competing bidder, a consortium of Swiss manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, bid Rs 170 crore per train set.
Previous Contracts and Future Tenders
Citing an official, the report mentions that an earlier contract for 200 Vande Bharat sleeper train sets was awarded at Rs 120 crore per rake. To ensure competitive pricing, another official suggested that future tenders would invite multiple bidders, unlike the recent tender, which saw only two participants.
Eligibility and Financial Structure
To qualify for the tender, companies must have a research and development (R&D) facility capable of producing a prototype and the capacity to assemble at least five train sets per year. The winning bidder would receive Rs 13,000 crore upon delivery of the train sets, with the remaining Rs 17,000 crore allocated for maintenance over 35 years.
