Indian Railways has canceled its Rs 30,000 crore tender for the production and maintenance of 100 Vande Bharat trains. The decision follows concerns about the pricing of the lowest bid and the limited number of bidders (according to moneycontrol.com).
Reasons for Cancellation
- Price Discrepancy: Alstom India, the lowest bidder, quoted Rs 150.9 crore per train. However, Indian Railways aimed for a price of Rs 140 crore per train.
- Limited Bidders: The tender process had only two participants—Alstom India and a consortium of Stadler Rail and Medha Servo Drives. Railways believed that a new tender might attract more bidders and lead to more competitive pricing.
Tender Details
- Opening Date: The tender was opened on May 30, 2023.
- Objective: The tender was issued in 2022 to invite companies to manufacture 100 aluminium body Vande Bharat trains within seven years. Aluminium trains are preferred for their lighter weight and energy efficiency compared to stainless steel trains.
Reactions from Alstom
- Company Statement: Olivier Loison, Managing Director of Alstom India, confirmed the cancellation. He expressed Alstom’s commitment to supporting the railways’ vision in the future and emphasized the company’s readiness to participate in any new tenders.
- Alstom’s View: A spokesperson for Alstom stated that their bid was competitive and aligned with global benchmarks. They highlighted the substantial initial investments required for aluminium trains and their commitment to supporting India’s self-reliance in train production.
| Tender Detail | Information |
|---|---|
| Tender Value | Rs 30,000 crore |
| Lowest Bidder | Alstom India |
| Bid Price per Train | Rs 150.9 crore |
| Target Price per Train | Rs 140 crore |
| Number of Bidders | 2 (Alstom and a consortium) |
| Tender Opening Date | May 30, 2023 |
| Train Type | Aluminium Vande Bharat Trains |
Impact on Future Plans
- Indian Railways has not yet issued a statement regarding the next steps. However, with the tender canceled, there is a possibility of a new bidding process to ensure competitive pricing and attract a wider range of participants.
The cancellation of the tender underscores the challenges in balancing cost, innovation, and competitive bidding in large-scale infrastructure projects. Indian Railways and Alstom India both remain committed to advancing the vision of modern and efficient rail mobility in India.
