Russian firm gets $6.5 billion contract to produce 120 Vande Bharat trains for India: Report

Transmashholding(TMH), the largest manufacturer of locomotives and rail equipment in Russia, has won a global bid to produce, supply and maintain 120 Vande Bharat express trains for the Indian Railways, Russian news agency TASS reported on Monday (April 17).

The 16-car long-distance trains are part of a major programme to re-equip the national carrier on long-distance routes. They will be able to reach a speed of up to 160 kilometres per hour, the report said.

Terms of the tender stipulated that the contract be signed by June 1. As per the report, the contract will pay $1.8 billion for supplying the Vande Bharat trains and $2.5 billion for their maintenance for 35 years. Considering the indexation, the total value of the contract could be as much as $6.5 billion.

Addressing a press conference, Transmashholding's Chief Executive Officer (CEO) Kirill Lipa said, "The decision has been made, but the document itself has not been signed, (it will be signed) within 45 days from March 29."

TMH took part inthe tender in a consortium with the Indian state construction and engineering company RVNL. The Russian firm beat out proposals by companies such as Alstom, Stadler, Siemens, and a consortium of local producers led by Titagarh and BHEL, which bid the second-lowest.

The report further said that the production of the trains will be localised at the Indian Railways, Marathwada Rail Coach Factory, in Latur, Maharashtra. The delivery of the trains is expected to take place between 2026 to 2030. But the first two prototypes will be ready for trials by the end of 2025.

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