The much-anticipated Vande Bharat sleeper trainset rollout has had a setback. The production is now delayed by at least 6 – 9 months from the original July 2025 timeline. The first prototypes, being developed by a consortium of Titagarh Rail Systems and State-owned BHEL Ltd, is now expected around March 2026. This delay is primarily a result of Railways seeking a modification of the contract terms that include train designs and coach configurations, but finally rescinding to the original plans.
Initially, the plan was for 16 coaches per train at a cost of ₹120 crore, but the Railways demanded 20 to 24 coaches, significantly altering the cost of production and stalling design approvals. Additional coaches would have meant increase in train costs on a probable pro rata basis.
The delivery of the first train, which was scheduled in June 2025 will be now March 2026.
“So it’s additional of 9 months for the prototype submissions….And then the balance trains will follow from the consortium,” a Railway official in the know said.
Earlier this month, the Railways in a letter to the consortium – of BHEL and Titagarh – said, “it is hereby advised to move ahead with the contract as per its original provisions.” businessline has reviewed a copy of the letter.
Revised Deadline
The letter further allows for a revised deadline for submission of prototypes and deliveries, acknowledging the delays. “However, your request for delivey period re-fixation has been considered….”, it mentions.
The revised clause in the contract now reads, “The technology partner (BEML – Titagarh) shall supply two prototype trains to the Government for tests and trials to be enacted in accordance with the provisions of the clause…..First prototype train be supplied within a period of 33 months from the appointed date. Second prototype should be delivered within 60 days of the date of delivery of the first prototype.”
The order was placed in June 2023 as per the Railway Board letter; and a 33 month timeline works out to be March 2026 as the now re-worked deadline.
Titagarh Rail Systems’ Vice-Chairman and Managing Director, Umesh Chowdhary, said formally the letter has been issued by the Railways and the execution of the project has started in full stream.
Chowdhary during a recent investor call said, the first few trains will be taken by the Railways on a 16 car configuration “as originally planned”. But “further trains will be considered to be taken in longer, that is 24 car configuration, which can be done by the Railways exercising the 30 per cent option clause,” he said.
“The Railways have also suo motu extended the delivery period for the train, considering the period of uncertainty without a new financial implication,” Chowdhary added.
Vande Bharat Sleeper Trains
The consortium was awarded the contract to build 80 sleeper Vande Bharat trains, to be supplied over a six year period – eight in first year, 12 in the second; and then onwards 20 each year.
The JV won the order, however, the amount they are to receiving from the national transporter was ₹120 crore per trainset, lower than what it had initially quoted, of around ₹140 crore per train.
Under the tender conditions for 200 Vande Bharat trains, the second-lowest bidder would have to match the price of the lowest bidder. Russia’s Transmasholding (TMH) and State-owned Rail Vikas Nigam Ltd had quoted the lowest price of ₹120 crore per trainset, which BHEL JV has agreed to.
This is the second set of Vande Bharat trainset rollout that has been delayed. The other batch of 120 trainsets by the TMH – RVNL JV too has been stuck as Railways was looking to renegotiate the contract.
Configuration Conundrum
The Railways had in May 2024 said, they would like to modify the contract from a 16-car configuration to a 24-car configuration.
And according to Chowdhary, the company had “represented to the Railways that while we are acceptable to be able to do that, this has to be done in terms of the relevant provisions of the contract and that discussion was ongoing.” This meant, renegotiation of prices.
“Now the Railways has finally issued the letter accepting our point of view wherein they have accepted to take the first few trains on the 16 car configuration itself. And thereafter, when they want to increase to the 24 car configuration, it would be done by way of exercise of the option quantity….. As of today, there is no plus or minus commercial impact to the contract that we have,” he said.
Chowdhary added, “We now expect the first train of Vande Bharat to be rolled out from our factory by March 2026 based on the agreement signed between us and the railways, a few days ago.”