Bhel emerges as fully Indian bidder for the Vande Bharat train

24 Feb 2023 CW Team

"The company after forming a consortium with BHEL is one out of five bidders for Vande Bharat. We remain optimistic. We are the only truly Indian consortium as both partners are Indians," TWL director (marketing & business development) Prithish Chowdhary said.

Other bidders include Siemens of Germany with BEML, Medha Engineering with Stadler Rail of Switzerland, Russian Transmashholding, and Rail Vikas Nigam Limited. Alstom, a French company, is the sole bidder.

"BHEL is the lead partner but the scope of work is almost equal. The finer details will have to be worked out based on operational efficiencies of each of us if we get the contract," he said.

The Vande Bharat tender is for the supply of 200 trains, including design, manufacturing, testing, and commissioning, with a 35-year maintenance contract.

The total estimated cost of 200 trains is approximately Rs 720 billion, with completion expected in the next 3-4 years. This contract would be awarded to two bidders, with the lowest bidder receiving 120 trains and the second lowest receiving 80 trains.

The trains will have to be built at Indian Railways' manufacturing facilities.

Chowdhary declined to predict any timeline for the selection of the two bidders but stated it wouldn't be long as the government is "committed to Atmanirbhar Bharat (policy) and local manufacturing".

He said, "We are implementing expansion in various projects to build capabilities for the future. In the last three years, we have invested Rs 3 billion and lined up Rs 7 billion in the next 4-5 years."

In terms of capacity expansion, Chowdhary stated that the immediate goal is to increase wagon-making capacity to 700 per month by March, with the capacity gradually increasing to 800-900 over time.

TWL is carrying out an order for 24,177 waggons, which must be delivered by August 2025.

The company currently has an annual capacity of 200-240 aluminum-bodied coaches, but once the ongoing steel body coach facility at the Uttarpara plant is completed, total production capacity will increase to 400 units per year, according to Chowdhary. TWL also submitted a bid for the Bengaluru Metro contract. The company is currently working on a contract for 102 coaches for the Pune Metro.

TWL previously acquired the Italian railway company Firema SPA, which improved its technical capabilities on modern transport coaches.

Titagarh Wagons Ltd (TWL) claimed that the consortium it formed with Bharat Heavy Electricals Limited (BHEL) is the only entirely Indian entity among the five bidders for the Rs 720 billion Vande Bharat trains contract. TWL, the engineering and waggon company, also announced Rs 7 billion in capex over the next 4-5 years to increase production capacity and related infrastructure. According to a senior company official, the upcoming steel body facility in Uttarpara, West Bengal, will strengthen TWL's coach-building capabilities in both aluminium and steel bodies. The company after forming a consortium with BHEL is one out of five bidders for Vande Bharat. We remain optimistic. We are the only truly Indian consortium as both partners are Indians, TWL director (marketing & business development) Prithish Chowdhary said. Other bidders include Siemens of Germany with BEML, Medha Engineering with Stadler Rail of Switzerland, Russian Transmashholding, and Rail Vikas Nigam Limited. Alstom, a French company, is the sole bidder. BHEL is the lead partner but the scope of work is almost equal. The finer details will have to be worked out based on operational efficiencies of each of us if we get the contract, he said. The Vande Bharat tender is for the supply of 200 trains, including design, manufacturing, testing, and commissioning, with a 35-year maintenance contract. The total estimated cost of 200 trains is approximately Rs 720 billion, with completion expected in the next 3-4 years. This contract would be awarded to two bidders, with the lowest bidder receiving 120 trains and the second lowest receiving 80 trains. The trains will have to be built at Indian Railways' manufacturing facilities. Chowdhary declined to predict any timeline for the selection of the two bidders but stated it wouldn't be long as the government is committed to Atmanirbhar Bharat (policy) and local manufacturing. He said, We are implementing expansion in various projects to build capabilities for the future. In the last three years, we have invested Rs 3 billion and lined up Rs 7 billion in the next 4-5 years. In terms of capacity expansion, Chowdhary stated that the immediate goal is to increase wagon-making capacity to 700 per month by March, with the capacity gradually increasing to 800-900 over time. TWL is carrying out an order for 24,177 waggons, which must be delivered by August 2025. The company currently has an annual capacity of 200-240 aluminum-bodied coaches, but once the ongoing steel body coach facility at the Uttarpara plant is completed, total production capacity will increase to 400 units per year, according to Chowdhary. TWL also submitted a bid for the Bengaluru Metro contract. The company is currently working on a contract for 102 coaches for the Pune Metro. TWL previously acquired the Italian railway company Firema SPA, which improved its technical capabilities on modern transport coaches. See also: Railways readies Rs 180,000 million plan for Vande Bharat maintenance BHEL among 5 bidders to manufacture 200 Vande Bharat trains