RVNL, TMH group told to resolve issues in Vande Bharat sleeper train deal

Rail Vikas Nigam Limited (RVNL) and Russia’s TMH have been asked to resolve their differences and move forward with the sleeper design contract for the Vande Bharat trains, The Economic Times (ET) Quoting a knowledgeable senior government official.

Both companies were asked to proceed with the bid in which the consortium appeared as the lowest bidder. “The issues between the two companies will be resolved soon and contracts for the manufacture of trains will be signed,” the official told the newspaper.

People involved in the negotiation process said that Indian Railways is looking forward to awarding the contract at the price set by the TMH-RVNL consortium.

TMH-RVNL had quoted a train price of Rs 120 crore which was significantly lower than the rates offered by competitors such as BHEL-Titagarh (Rs 139.38 crores), Bharat Earth Movers Limited (BEML) -Siemens (Rs 145 crores), Alstrom Transport (Rs 164.52 crores). Rs.), and Medha Servo Drives-Stadler Rail (Rs. 165 crore), ET mentioned. The TMH-RVNL consortium has submitted its bid to supply 120 of the 200 trains offered by Indian Railways.

The contract includes supply of train sets by 2029 and maintenance service for more than 15 years. Last month, the BHEL-Titagarh group matched the bid price submitted by TMH-RVNL and finalized a contract with Indian Railways to make the remaining 80 Vande Bharat sleeper train sets.

said Sergey Medvedev, Head of Business Development in India, TMH Group ET In June, RVNL reported that it was seeking a change to the terms that were originally signed by both parties.

According to the original understanding reached between TMH and RVNL, Metrowagonmash (MWM), which is part of the TMH group, owns a 70 percent stake in the joint venture (JV), and another Russian producer of train control systems LES owned a 5 percent stake. In the joint venture, the remaining 25 percent was owned by RVNL. However, as the joint venture won the bid, RVNL said it wanted 69 percent ownership in the joint venture, ET The report said.