Indian Railways asks Alstom to reduce the bid price for 100 aluminium-bodied Vande Bharat trains

The Indian Railways has called on Alstom, a French rolling stock manufacturer that operates in rail transport markets throughout the globe, to negotiate a lower offer price of INR 150.9 crore per Vande Bharat trainset. Alstom was the lowest bidder of INR 30,000 crore for producing and maintaining 100 aluminium Vande Bharat trains with sleeper coaches and a maximum speed of 200 kmph.

According to sources, the French business must provide a negotiated price to the Railways' bidding committee to finalise the bids. The financial proposals were launched on May 31 this year, with just two large rolling stock conglomerates — Alstom and Medha — competing to produce 100 aluminium-bodied Vande Bharat trains. Both were technically qualified and once the financial offer was opened on May 30, Alstom emerged as the lowest bidder.

While Alstom was the lowest bidder at INR 150.9 crore for one aluminium-bodied Vande Bharat with sleeper accommodation, Medha was the highest bidder at INR 169 crore and lost to the former. The trains will be built at the Railways' Sonepat plant in Haryana. The deal is anticipated to cost INR 36,200 crore without tax and price fluctuation clause, with a provision for 35 years of maintenance.

The Vande Bharat is a semi-high-speed railway with 16 self-propelled cars and no separate engine. This approach, known as distributed traction power, is becoming more common for passenger operations worldwide. These trains include updated seats and an anti-bacterial air conditioning system and can reach 160 km/h in less than 140 seconds.