- 31 Mar 2023
- ICICIdirect Research
INDIAN RAILWAYS ISSUES LETTER OF AWARD TO MAKE RAKES
News: Indian Railways has issued a letter of award (LOA) to TMH, the Russian rolling stock company, to start the necessary preparation for making 120 rakes at Latur. TMH-RVNL which quoted Rs 120 cr price per train is the lowest bidder in the just concluded tendering process for manufacturing of Vande Bharat trains with Sleeper coaches while Titagarh-BHEL quoting nearly Rs 140 cr per train is the second lowest bidder. Now TMH-RVNL has to deposit Rs 200 cr and Titagarh-BHEL to deposit Rs 160 cr as performance guarantee bond with the Railways as the next step in the Vande Bharat project worth Rs 50,000 cr with 35 years of maintenance provision. According to sources, the interior panels and Sleeper berths of the Vande Bharat will be provided by Tata Steel as both Titagarh and TMH are in talks with Tata to finalise the job.
Views: As TMH-RVNL which comes as the lowest bidder also Titagarh-BHEL consortium is communicated by the Railways to lower the price as a counteroffer. Titagath - BHEL matches the L1 bid, the companies are likely to receive order inflow and that will provide medium term revenue visibility.
Impact: Positive