Indian Railways Cancels Rs 30,000-Crore Tender for Vande Bharat Trains Due to High Price

 

In a significant development for India’s railway sector, Indian Railways has decided to cancel a Rs 30,000-crore tender awarded to Alstom India for the supply of 100 Vande Bharat trains. The decision comes in response to the excessively high price quoted by the French multinational company.

The Vande Bharat trains, known for their high-speed capabilities and modern amenities, are a key part of Indian Railways’ efforts to enhance its passenger services and infrastructure. The tender, which was one of the largest procurement deals in the railway sector, was intended to boost the fleet of these state-of-the-art trains, aiming to improve travel comfort and efficiency across the country.

However, Indian Railways raised concerns over the cost escalation associated with the deal. The high price, which was reportedly above the budgetary estimates, led to a reassessment of the tender. The cancellation reflects Indian Railways’ commitment to ensuring value for money and maintaining financial prudence in its procurement processes.

The move will likely lead to a reevaluation of the project and potential re-tendering. This decision also underscores the challenges faced by Indian Railways in balancing modernization goals with cost constraints. As the railway sector remains a crucial component of India’s transport infrastructure, stakeholders will be keenly watching the next steps in this procurement process.