Rail Vikas Nigam, Titagarh Wagons and Bharat Heavy Electricals Limited (BHEL) have placed the lowest bids in the tender to manufacture 200 Vande Bharat trains. Shares of Rail Development Corporation rose 15 percent to Rs 67.50 on the BSE, Titagarh Wagons rose 10 percent to Rs 234.40 and BHEL stock gained 4 percent to Rs 75.73.
How many bids for Vande Bharat train?
The lowest bid was submitted by a consortium of Railway Development Corporation and Russia’s CJSC Transmashholding. The consortium submitted a bid for the construction and maintenance of 200 Vande Bharat trains for 35 years at a rate of Rs 120 crore per train. While BHEL and Titagarh Wagons submitted a bid of Rs 139.8 crore per train. As per the bidding conditions, the lowest bidder will get the contract to manufacture, supply and maintain 120 Vande Bharat trains. These will be manufactured at Indian Railways’ Latur plant. The remaining 880 cars will be manufactured at the Chennai plant to the second lowest bidder.
400 Vande Bharat train targets
The government has set a target of manufacturing 400 Vande Bharat trains in the financial year 2024-25. Apart from this, it is also targeted to export them to South Africa and some European countries by 2026. For this, a provision of Rs 2.40 lakh crore has been made to the Railways in the budget of the financial year 2023-24.
A provision of Rs 1.40 lakh crore was made for the financial year 2022-23. According to brokerage firm ICICI Direct, increased fund allocation to railways will support the entire capital production sector, including railway companies. If BHEL gets the contract, it could see a huge increase in its revenue.