Indian Railways cancels Rs 30,000-crore tender for 100 Vande Bharat trains to Alstom India: Report

The Indian Railways has reportedly cancelled its Rs 30,000-crore tender for the manufacturing and maintenance of 100 aluminium-body Vande Bharat trains to Alstom India.

The cancellation was confirmed by Alstom India MD Olivier Loison. According to a report in Moneycontrol, Loison said that while Indian Railways has cancelled the order, the company is well-positioned to support the realisation of the vision in the future, if the need arises.

As per the report, the tender panel found that the company’s bidding price of Rs 150.9 crore for each train was too high, and urged them to cap it at Rs 140 crore. Alstom India wanted to seal the deal at Rs 145 crore per train set. It was the lowest bidder for the Rs 30,000-crore tender, and was aiming to manufacture all the 100 Vande Bharat rakes. The other bidder, a consortium comprising Swiss manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, made a bid of Rs 170 crore per train set.

An earlier contract to manufacture 200 Vande Bharat sleeper train sets was granted at Rs 120 per rake, the report stated citing an official. 

Another official, highlighting the importance of competition to get the best price, said that the next round of tender would invite multiple players, unlike the latest one that involved only two players.

The eligibility norms to qualify for the tender includes a research and development (R&D) facility to ensure they can manufacture a prototype and also have the capacity to assemble at least five train sets a year.

The report stated that the winning bidder would receive Rs 13,000 crore upon delivery of the train sets, and the remainder Rs 17,000 crore would be paid for maintenance over 35 years.