Indian Railways has cancelled the tender for 100 Vande Bharat trains. A Rs 30,000 crore deal was to be signed with French company Alstom India, which included the manufacturing and maintenance of 100 aluminium body Vande Bharat trains. However, the deal has not been finalised. Alstom India MD Olivier Loison himself has confirmed this. According to a Money Control report, Loison said that Indian Railways has cancelled the order, but if given the opportunity, the company will be in a strong position to fulfil the railways’ vision.
According to the report, the tender panel believed that the company’s price of Rs 150.9 crore for each train was too high. It was demanded to limit it to Rs 140 crore. But, Alstom India wanted to settle the deal at Rs 145 crore per train set. The special thing is that it was the lowest bidder for the Rs 30 thousand crore tender, whose target was to manufacture all 100 Vande Bharat rakes. Swiss manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives had bid Rs 170 crore per train set.
How this is a setback to the efforts of Indian Railways
The report quoted an official as saying that many players will be invited in the next round of tender. This will increase competition and cost reduction can be expected. The official said that the cancellation of this tender will help the railways to assess their price. Also, the bidding companies will get a chance to understand their project and offer. However, the cancellation of the current tender has definitely given a setback to the efforts of Indian Railways. It has been believed that there are preparations to lay a network of Vande Bharat trains across the country. Especially considering that Vande Bharat trains have become very popular among the passengers.
