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 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.
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.
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. This is the
second set of Vande Bharat trainset rollout that has been delayed. The other
batch of 120 trainsets is by the TMH – RVNL. JV too has been stuck as Railways
was looking to renegotiate the contract. 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....“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.”