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News: A consortium led by state-owned Bhel has bagged an order worth more than Rs 9,600 crore to supply 80 sleeper class Vande Bharat trains to Indian Railways over six years. The order for annual maintenance contract (AMC) has also been placed for 35 years. The order is for supply of 80 trains each at a cost of Rs 120 crore, excluding taxes and duties. The consortium will also equip, upgrade, operate and maintain the exclusive place provided in the manufacturing unit at ICF Chennai and two depots assigned by the Indian Railways
Views: The Centre had in Budget 2021-22 set an ambitious target to manufacture 400 Vande Bharat trains in India by the end of 2024-25. Bhel's order inflow for 9MFY23 was at Rs 17839 crore with order book of Rs 103,694 crore (4.5x TTM sales). With this large order Bhel will get medium term revenue visibility
Impact: Positive