Government Explores Incentive to Boost Local Train Manufacturing

16 Aug 2023 CW Team

In the case of imported items, the government is offering incentives based on output through the PLI initiative. The Indian Railways, one of the world's largest transportation systems, presently encompasses 28 types of passenger coaches. However, the government intends to streamline this to just two categories: Linke Hofmann Busch (LHB) and Vande Bharat, as indicated by the report.

LHB coaches, introduced in 1999, have a 1.5 percent import component, while Vande Bharat trains have a 15 percent import component. An official mentioned in the report emphasized that the primary focus would be on evaluating the export potential of Vande Bharat trains and the steps required to promote the localization of train components. The report also highlighted that manufacturing these components domestically would lead to more economical maintenance of these coaches.

The proposed PLI program is expected to encourage the establishment of new manufacturing facilities or the expansion of existing ones to supply coach and engine parts that are presently imported, as stated by the official. Despite sustained demand from the railways, India continues to import crucial components for rolling stock, including wheels and axles.

In recent developments, a contract was awarded to TZ (Taizhong) Hong Kong International Ltd in April for 33,000 LHB wheels, and Bonatrans India also secured an order. The latter was importing black forged axles from Railteco, China, and then conducting the machining process in India. To reduce dependency on imports, a procurement order was issued by the railways for 1.54 million domestically produced forged wheels.

An additional official noted that the demand for components related to Vande Bharat and LHB is expected to witness significant growth within the country. This is attributed to the projection that around 4,500 Vande Bharat trains will be operational in India by the year 2047.

It is reported that the government is currently exploring the implementation of a program linked to production incentives (PLI) aimed at reducing reliance on imports and attracting foreign manufacturers in the train component manufacturing sector. According to the report, a consultant will compile a list of components used in constructing engines and coaches, commonly referred to as rolling stock, which are predominantly imported. In the case of imported items, the government is offering incentives based on output through the PLI initiative. The Indian Railways, one of the world's largest transportation systems, presently encompasses 28 types of passenger coaches. However, the government intends to streamline this to just two categories: Linke Hofmann Busch (LHB) and Vande Bharat, as indicated by the report. LHB coaches, introduced in 1999, have a 1.5 percent import component, while Vande Bharat trains have a 15 percent import component. An official mentioned in the report emphasized that the primary focus would be on evaluating the export potential of Vande Bharat trains and the steps required to promote the localization of train components. The report also highlighted that manufacturing these components domestically would lead to more economical maintenance of these coaches. The proposed PLI program is expected to encourage the establishment of new manufacturing facilities or the expansion of existing ones to supply coach and engine parts that are presently imported, as stated by the official. Despite sustained demand from the railways, India continues to import crucial components for rolling stock, including wheels and axles. In recent developments, a contract was awarded to TZ (Taizhong) Hong Kong International Ltd in April for 33,000 LHB wheels, and Bonatrans India also secured an order. The latter was importing black forged axles from Railteco, China, and then conducting the machining process in India. To reduce dependency on imports, a procurement order was issued by the railways for 1.54 million domestically produced forged wheels. An additional official noted that the demand for components related to Vande Bharat and LHB is expected to witness significant growth within the country. This is attributed to the projection that around 4,500 Vande Bharat trains will be operational in India by the year 2047. See also: Titagarh Wagons confirms single-largest order for 24,177 wagonsCEA approves transmission lines for hybrid power project in TN

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..