In a significant move, Indian Railways has reportedly cancelled a Rs 30,000-crore tender awarded to Alstom India for the production and maintenance of 100 aluminium-body Vande Bharat trains. This decision was confirmed by Olivier Loison, Managing Director of Alstom India, who stated that while the order has been revoked, the company remains committed to supporting Indian Railways vision in the future if required.According to a report by Moneycontrol, the tender committee found Alstoms bid of Rs 150.9 crore per train set to be excessively high. The committee had urged the company to reduce the price to Rs 140 crore per train, but Alstom India was only willing to negotiate down to Rs 145 crore per set.Lowest BidderDespite being the lowest bidder, Alstoms price did not meet the committees expectations, leading to the cancellation of the tender. The other competitor, a consortium comprising Swiss manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, had placed a higher bid of Rs 170 crore per train set.Previously, Indian Railways had awarded a contract to produce 200 Vande Bharat sleeper train sets at a cost of Rs 120 crore per rake, highlighting a significant difference in pricing. An official noted that increasing competition in the tendering process is crucial to securing the best prices. The upcoming tender process is expected to involve multiple bidders, unlike the previous one that only saw participation from two players.Eligibility CriteriaThe eligibility criteria for the tender include the requirement for a research and development (R&D) facility to develop a prototype, as well as the capability to assemble at least five train sets annually. The winning bidder is projected to receive Rs 13,000 crore upon delivery of the train sets, with the remaining Rs 17,000 crore allocated for maintenance over the next 35 years.
