The Indian Railways has cancelled its tender worth Rs 30,000 crore for the manufacturing and maintenance of 100 aluminium-body Vande Bharat trains, which was awarded to Alstom India. The announcement was confirmed by Alstom India’s Managing Director, Olivier Loison. Despite the cancellation, Loison expressed that Alstom India is prepared to support the realization of this vision in the future, should the need arise.
Tender Details and Pricing
According to a Moneycontrol report, the tender panel found Alstom India’s bidding price of Rs 150.9 crore per train set to be too high. The panel recommended a cap of Rs 140 crore per train set. Alstom India aimed to finalize the deal at Rs 145 crore per train set, being the lowest bidder for the Rs 30,000 crore tender. The competing bid came from a consortium of Swiss manufacturer Stadler Rail and Hyderabad-based Medha Servo Drives, who offered Rs 170 crore per train set.
Previous Contract and Future Tender
An earlier contract for manufacturing 200 Vande Bharat sleeper train sets was awarded at Rs 120 crore per rake. Officials have highlighted the importance of competition in securing the best price and indicated that the next round of the tender will include multiple bidders, unlike the current one which involved only two.
Eligibility and Payment Terms
To qualify for the tender, bidders must have a research and development (R&D) facility to manufacture prototypes and the capacity to assemble at least five train sets per year. The winning bidder would receive Rs 13,000 crore upon delivery of the train sets, with the remaining Rs 17,000 crore allocated for maintenance over a period of 35 years.
Multiple-Choice Questions (MCQs):
- Why was the Rs 30,000-crore tender for Vande Bharat trains cancelled?
- A) Alstom India withdrew from the bidding.
- B) The bidding price was considered too high.
- C) Indian Railways decided to delay the project.
- D) The tender panel found discrepancies in the bids.
- What was the bid amount offered by Alstom India for each Vande Bharat train set?
- A) Rs 150.9 crore
- B) Rs 140 crore
- C) Rs 145 crore
- D) Rs 170 crore
- What was the bid amount offered by the consortium comprising Stadler Rail and Medha Servo Drives?
- A) Rs 150.9 crore
- B) Rs 140 crore
- C) Rs 145 crore
- D) Rs 170 crore
- How much was the earlier contract for manufacturing 200 Vande Bharat sleeper train sets awarded?
- A) Rs 150 crore
- B) Rs 120 crore
- C) Rs 140 crore
- D) Rs 170 crore
- What are the eligibility norms for the tender?
- A) Must have a factory in India.
- B) Must have an R&D facility and the capacity to assemble at least five train sets annually.
- C) Must have experience in manufacturing high-speed trains.
- D) Must offer the lowest bid.
- What is the payment structure for the winning bidder?
- A) Rs 13,000 crore for delivery and Rs 17,000 crore for maintenance over 20 years.
- B) Rs 13,000 crore for delivery and Rs 17,000 crore for maintenance over 35 years.
- C) Rs 30,000 crore for delivery only.
- D) Rs 13,000 crore for delivery and Rs 30,000 crore for maintenance.