There were repeated changes in the SPV structure for the manufacture of Vande Bharat sleeper trains by the Russian joint venture partners, thereby leading to a revised proposal being submitted in July 2024, senior Railway officials told businessline.
The first prototype train by Kinet (Russian JV with RVNL) is likely to be manufactured by June 2026.
“Thus, there has been substantial delay in the finalisation of the structure of SPV by Kinet because of the discussions within the joint venture partners,” they said.
While denying that there was any loss to the CPSE RVNL because of the delay in project execution, officials said the technology partners were reluctant to opt for changes in the contract. Hence, the Railways decided to stick to the originally decided upon 120 train sets with 16 coach configuration each.
“It is incorrect to say that RNVL suffered a loss of ₹76 crore; firstly, as RVNL has themselves said that it is notional as manufacturing is still to start; and secondly, the share holding pattern is on account of the SPV,” the official explained.
Repeated changes
Officials said the bank guarantee was submitted by the firm (Kinet Railway Solutions) on August 28, 2023, because of the delay in SPV formation and shareholding of the respective firms. The consortium was accordingly asked to deposit liquidated damages also for the delay.
The contract was finally signed in September 2023.
In October 2023 and January 2024, the firm requested for a change in the shareholding patterns of the SPV. And it took final shape in July 2024.
Incidentally, the initial letter of acceptance “for manufacture and maintenance of 120 train-sets of Vande Bharat Express” was issued to consortium of JSC Metrowagonmash, LES and India’s RVNL in March 2023.
“The firm was asked to submit the performance bank guarantee for ₹200 crore … (and) submitted by the firm on 28.08.2023 because of the delay in formation of SPV,” Railway officials clarified to businessline.
Senior officials also said tender documents “had very clearly specified that that train configuration (16, 20 or 24 coaches) would be decided based on the operational requirement of Indian Railways.
The Railways clarified that “in view of the success of Vande Bharat chair car version, and subsequent traffic projections” the national transporter revised its requirements “to 24 car train sets from existing 16 car train-sets” and both technology partners were asked to submit their detailed proposal in May 2024.
Tweaking design
The 24-car configuration also necessitated changes in coach composition, luggage van, pantry and number of toilets in view of operational necessities.
“Technology partners were granted extension of 9 months to deliver the first prototype as per provisions of the contract,” the official said.
- Read: Vande Bharat sleeper train production delayed by 9 months
