Thursday, August 15, 2024
Studying Time: 2 minutes
In a big growth, Indian Railways has canceled its Rs 30,000 crore tender for the manufacturing and upkeep of 100 Vande Bharat trains. The choice comes after the nationwide transporter discovered the worth quoted by the bottom bidder, Alstom India, to be too excessive. This info was reported by MoneyControl and confirmed by Olivier Loison, managing director of Alstom India.
Tender Cancellation Particulars
The tender, floated in 2022, aimed to ask corporations to fabricate 100 aluminum physique Vande Bharat trains inside a seven-year interval. Indian Railways had emphasised the desire for aluminum trains on account of their lighter weight and better vitality effectivity in comparison with stainless-steel alternate options. Nonetheless, the tender course of, which was opened on Could 30, 2023, has now been scrapped.
Alstom India, the French multinational firm, emerged because the lowest bidder with a quoted value of Rs 150.9 crore per practice. Nonetheless, Indian Railways was in search of a value nearer to Rs 140 crore per practice. With solely two gamers taking part within the bidding course of, together with a consortium comprising Swiss railway rolling inventory producer Stadler Rail and Hyderabad-based Medha Servo Drives, Indian Railways determined to cancel the tender. The railway authorities consider that reissuing the tender might appeal to extra opponents, resulting in extra aggressive pricing.
Alstom’s Response to Tender Cancellation
Alstom India, regardless of being the bottom bidder, expressed disappointment with the tender’s cancellation. A spokesperson for the corporate acknowledged, “Alstom’s offer for the 100 Aluminium EMU’s was a very competitive offer, and the lowest when benchmarked against similar trains produced globally. With a 220kmph design speed, the manufacturing of these state-of-the-art aluminum trains requires substantial initial investments in the product design, being the first such product for the Indian market.”
The spokesperson additional emphasised that Alstom had labored carefully with Indian Railways to optimize its provide, aligning with the ‘Atma Nirbhar Bharat’ imaginative and prescient. The corporate highlighted that aluminum-based trains are the way forward for environment friendly and sustainable rail mobility in India. Alstom stays dedicated to supporting the conclusion of this imaginative and prescient, regardless of the present setback. The corporate is already superior within the growth of this product for the Indian market and appears ahead to any new tenders which will come up on this house.
Future Prospects
To date, Indian Railways has not issued an official assertion relating to the tender cancellation. Nonetheless, the earlier contract to fabricate 200 Vande Bharat sleeper practice units fabricated from stainless-steel was granted at Rs 120 crore per practice. The cancellation of the present tender underscores Indian Railways’ ongoing efforts to stability cost-efficiency with cutting-edge know-how because it continues to modernize its fleet.
