Mumbai Railway Development issuing a Rs 21,000-crore tender for air-conditioned train coaches, with companies such as BEML, Titagarh, and Alstom in competition
The coach manufacturing sector in India has experienced a significant revival, thanks to the Vande Metro coaches tender. This tender, worth an estimated Rs 21,000 crore, has been floated by the Mumbai Railway Vikas Corporation (MRVC) for the production of 2,856 air-conditioned Vande Metro coaches for the Mumbai suburban rail network.
Activity in the sector has picked up due to this tender and various metro projects, keeping order inflows strong. The focus on the coach manufacturing space has been heightened, marking an end to a lull of almost two years.
If the order is split between two bidders, the first will supply 1,715 coaches within 6.5 years, and the second will supply 1,141 coaches within the same timeframe. The winning bidder will have 7.5 years to complete delivery of the coaches, and the first 12-car prototype rake must be ready within 24 months.
Three key contenders for the project are Alstom, BEML, and Titagarh Rail, as the tender mandates local manufacturing, and these companies already have established coach production units in India. Besides Alstom and BEML, Titagarh Rail is the other company with a chance to secure the contract, given its existing coach manufacturing facility in India.
Recently, Titagarh Rail Systems bagged a Rs 467.25 crore order from Garden Reach, further cementing its position in the sector. The contract for the Vande Metro coaches project also includes comprehensive maintenance for 35 years and the setting up of two new depots under the Mumbai Urban Transport Project (MUTP) phases III and 3A.
Nuvama, a leading research firm, has noted the value of the orders exceeding Rs 1,500 crore this week, won by Reliance Infra, Titagarh, and Jupiter Wagons. The firm remains positive on Titagarh Rail in the coach manufacturing space, suggesting that if the Vande Metro coaches tender is divided between two players, Titagarh Rail can bid for future projects without much competition.
The latest tender is expected to provide a significant boost to the coach manufacturing sector, with MRVC planning to procure 238 AC local trains under MUTP-III and 3A for the Mumbai suburban network. These plans include 47 trains under MUTP-III and an additional 191 trains under MUTP-3A, further expanding the Mumbai suburban network.
In conclusion, the Vande Metro coaches tender has sparked a renewed interest in the coach manufacturing sector in India. With orders worth billions of rupees, the sector is poised for growth, and companies like Titagarh Rail are well-positioned to capitalise on this opportunity.
