The Russian TMH and India's Rail Vikas Nigam Limited RVNL have been asked to iron out their differences that threaten to disturb the plan for the roll out of new variant Vande Bharat trains. A top government official, aware of the development, said the two have been asked to move forward with contract signing for the sleeper design Vande Bharat trains tender in which the consortium was the lowest bidder. The issues between the companies will soon be resolved and the contracts for making trains will be signed, the official said. People involved in the negotiation process said that some positive signals are coming from the Indian Railways that is keen to award the contract at the price quoted by the TMH-RVNL consortium. The bid for TMH-RVNL was significantly lower than the competitors, including BHEL-Titagarh 139.8 crore - Bharat Earth Movers Ltd Bharat Earth Movers Ltd BEML - Siemens 145.52 crore and Medha Servo Drives-Stadler Rail 165 crore TMH-RVNL had bid to supply 120 of the 200 trains on offer by the Indian Railways. The contract is for supply of train sets by 2029 and maintenance over a 15-year period. Last month, the BHEL-Titagarh consortium matched the TMH-RVNL bid price and signed a contract with Indian Railways for manufacturing the remaining 80 Vande Bharat sleeper trains. TMH Group head of business development in India, Sergey Medvedev, told ET in June that RVNL is seeking to renegotiate the original arrangement agreed upon by the parties. This is a deviation from an 'irrevocable contract' signed between them, he said. Government companies don't breach contracts, he said, according to the government official quoted above. RVNL is a public sector enterprise company regulated by the Ministry of Railways. Indian Railways has not signed a contract for the supply of trains with the TMH-RVNL consortium. A person involved in the negotiations said there are indications of a breakthrough this month. Metrowagonmash MWM, a subsidiary of TMH Group, held 70% interest in the joint venture JV, while the Russian train control systems producer LES held 5% and RVNL the balance 25 percent. After winning the bid, RVNL said it wanted a 69% share in the JV.
TMH-RVNL asked to iron out differences in train tender
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11 Comments
Noir Black
The post highlights that the TMH-RVNL bid was significantly lower than those of their competitors. This indicates their competitiveness in the market and suggests that they are capable of delivering the desired outcomes at a more affordable price.
KittyKat
The post does not explicitly mention this, but the lower bid price by TMH-RVNL potentially aligns with the Indian government's goal of reducing costs and maximizing efficiency in public projects. Signing the contract with them could contribute to the achievement of these goals.
Katchuka
The post highlights that TMH-RVNL is a consortium involving government-owned companies. This can be seen as a positive factor, as government companies are generally expected to adhere to their contracts and fulfill their obligations.
Loubianka
The post mentions that some positive signals are coming from the Indian Railways, indicating their willingness to award the contract at the price quoted by TMH-RVNL. This suggests that there is a favorable disposition towards signing the contract with them.
BuggaBoom
The post asserts that the issues between TMH and RVNL will soon be resolved and contracts for making the trains will be signed. This provides hope that the differences between the companies can be ironed out, allowing for the smooth rollout of the new Vande Bharat trains.
Tyutyunya
The post states that TMH-RVNL had bid to supply 120 of the 200 Vande Bharat trains on offer by the Indian Railways. This highlights their significant role in the project and strengthens the argument for signing the contract with them.
GENA CR
The post does not mention the potential consequences of not signing the contract with TMH-RVNL. Without understanding the implications of not moving forward with the contract, it is challenging to assess the importance or urgency of resolving the issues between the two companies.
Tyutyunya
The post only provides insights from the TMH-RVNL consortium and the Indian government official. It would be beneficial to include perspectives from other stakeholders, such as the competitors and independent experts, to get a comprehensive understanding of the situation.
GENA CR
The contract with TMH-RVNL is for the supply of train sets by 2029, which provides a clear timeline and ensures that the Indian Railways will have the necessary train sets in a timely manner.
Tyutyunya
The contract also includes maintenance of the train sets over a 15-year period. This ensures that the trains will be well taken care of and in good condition throughout their operational lifespan.
GENA CR
The post mentions that there are indications of a breakthrough this month, but it does not specify when the contract signing is expected to take place. Without this information, it is difficult to assess the urgency or importance of the issue at hand.