‘New Delhi. The dispute over the design and cost of the sleeper version of the Vande Bharat train is deepening between Indian Railways and Russian rolling stock manufacturer Transmashholding (TMH). This issue can impact the project timeline and increase costs. The Indo-Russian joint venture led by TMH had signed an agreement with Indian Railways in September 2023 for the supply of 1,920 sleeper coaches and its maintenance for 35 years.
The project was scheduled for production at the Marathwada Rail Coach Factory in Latur, Maharashtra. According to a report in the Indian Express, changes in the design and the demand to add new features have made the project complicated.
Also read- Stock Tips: There will be a profit of Rs 73 on each share! Brokerage predicted that the company will distribute dividends in abundance.
Design changes and demand of railways
Indian Railways directed TMH to make changes in the design and interior features of the coaches in May 2024. This includes demands like additional toilets and pantry cars. According to TMH CEO Kirill Lipa, the changes affect the entire layout of the coach, with windows, seats and other designs having to be redesigned. He said that these changes require additional time and budget.
Lipa said, “We have sent our response to Indian Railways in September 2024 and have demanded compensation or additional budget for changes in the designs. However, no clear response has been received from the Railways yet.”
Issue raised in inter-governmental meeting
This dispute was also raised in the inter-governmental meeting between India and Russia, in which Foreign Minister S. Jaishankar and Russia’s First Deputy Prime Minister Denis Manturov were present. Lipa discussed the problem of project delay and cost overrun in this meeting. He expressed hope that both sides will reach a solution soon.
Other companies also involved
Apart from the collaboration between TMH and RVNL, Titagarh-BHEL will also manufacture 80 such sleeper trains. TMH currently supplies passenger trains, coaches, metro cars, locomotives and other rail equipment globally. Railways has said that after the changes, the first prototype will have to be supplied within 24 months. However, if the resolution is further delayed, the project’s timeline and production costs could be seriously impacted.
Tags: Indian railway, vande bharat
FIRST PUBLISHED: November 23, 2024, 19:28 IST