Indian Railways Cancels Vande Bharat Tender: Indian Railways has made a significant decision by cancelling its ₹30,000-crore tender with Alstom India for the production and maintenance of 100 Vande Bharat trains. This development, confirmed by Alstom India’s Managing Director Olivier Loison, underscores the ongoing challenges faced in striking a balance between cost and innovation within large-scale railway projects.
Tender Details and Bidding Dynamics
Alstom India, the lowest bidder, proposed a cost of ₹150.9 crore per train set. However, the tender panel deemed this price too high, urging the company to lower its bid to ₹140 crore per train set. Despite Alstom India’s willingness to negotiate down to ₹145 crore per train, the deal ultimately failed to materialise. The other bidder in the fray, a consortium comprising Switzerland’s Stadler Rail and Hyderabad-based Medha Servo Drives, quoted a higher price of ₹170 crore per train set.
This cancellation follows a previous contract awarded at ₹120 crore per rake for 200 Vande Bharat sleeper train sets. The contrasting bids highlight the critical role of competition in securing the best price for significant projects.
Next Steps and Future Implications
The next round of tenders is expected to invite more participants, in stark contrast to the current tender, which saw only two contenders. Eligibility criteria for this tender include the requirement for a research and development (R&D) facility capable of producing a prototype and the capacity to assemble at least five train sets annually. The winning bidder was slated to receive ₹13,000 crore upon delivery of the train sets, with an additional ₹17,000 crore allocated for maintenance over 35 years.
The cancellation of the tender opens the door for broader competition in the next round, with the aim of securing better pricing and terms for the manufacturing of these crucial train sets. This move is viewed as a strategic step towards optimising costs while simultaneously meeting the ambitious goals of modernising India’s railway infrastructure.
Strategic Importance of the Vande Bharat Trains
The Vande Bharat trains represent a significant leap forward in India’s railway modernisation efforts, offering advanced features and enhanced passenger comfort. By cancelling the tender and inviting a new round of bids, Indian Railways is not only ensuring cost-effectiveness but also fostering an environment of innovation and technological advancement in the country’s railway sector.
Conclusion
The cancellation of the ₹30,000-crore Vande Bharat tender to Alstom India reflects a strategic decision by Indian Railways to optimise costs and foster competition. As the country continues its journey towards railway modernisation, the Vande Bharat trains remain a symbol of India’s aspirations for a more efficient, comfortable, and technologically advanced railway network. The next tender round is poised to bring in fresh perspectives and competitive bids, setting the stage for a new chapter in the evolution of Indian Railways.
