Russia’s rolling stock major Transmashholding (TMS) and India’s state-owned Rail Vikas Nigam Limited (RVNL) is planning to form a joint venture (JV) to produce 120 Vande Bharat trains with sleeping cars (AC Sleeper Coaches). Through this strategic alliance, the two organizations hope to increase domestic manufacturing and promote technological development in the rail transportation industry.
While the share purchase agreement has been signed, the specifics will only be filed after the Shareholders Agreement has been signed, according to RVNL’s BSE filing from July 18th. The joint venture is owned by TMH subsidiary Metrowagonmash to the tune of 70 percent, RVNL to the tune of 25 percent, and Locomotive Electronic Systems (LES), a Russian equipment provider, to the tune of 5 percent, according to the shareholding structure.
The choice to establish this JV is an important step in supporting India’s “Make in India” effort, which aims to improve domestic manufacturing capacity and lessen reliance on imports. The partnership is poised to become a formidable force in the upgrading of India’s rail infrastructure by fusing RVNL’s understanding of the Indian Railways System with Transmashholding’s proficiency in producing state-of-the-art rolling stock.
While the share purchase agreement has been signed, the specifics will only be filed after the Shareholders Agreement has been signed, according to RVNL’s BSE filing from July 18th.
The Vande Bharat train, commonly known as Train 18, is India’s first homegrown semi-high-speed train and exhibits an amazing level of comfort, safety, and amenities for passengers. With the help of this joint venture, it is anticipated that the quality and efficiency of these trains would be further improved, providing passengers with faster and more dependable intercity connectivity.
Additionally, the partnership promises to create job opportunities and support economic expansion in both Russia and India. By creating a local manufacturing base, opportunities will be created to export cutting-edge railway technologies to other nations in addition to meeting domestic demand.
The partnership promises to create job opportunities and support economic expansion in both Russia and India.
In a bilateral meeting, Rail Vikas Nigam Limited (RVNL) and Transmashholding (TMS) inked a memorandum of understanding (MoU), demonstrating their shared commitment to advancing India’s rail transportation future. Now, the next step is to sign the contract and deposit the bank guarantee of Rs 200 crore at the earliest, as per the statement given by a Senior Railway Official.
It is projected that as the project develops, it would enable considerable improvements in the country’s railway infrastructure, establishing India as a powerhouse for innovation and technological excellence in the world of rail.
In conclusion, the establishment of this joint venture is an important turning point in the creation of Vande Bharat trains and reflects the nation’s dedication to encouraging global collaboration and technological leadership in the rail sector. This partnership will be crucial in determining the direction of rail travel in India and establishing new standards for high-speed rail travel.
This partnership will be crucial in determining the direction of rail travel in India and establishing new standards for high-speed rail travel.
Earlier, the deal encountered difficulties when RVNL demanded a majority stake in the project, which was rejected by TMH and delayed the formal contract signing between the Joint Partners.