MOSCOW, Apr 4 (PRIME) -- Russian railway equipment producer Transmashholding plans to sign a contract for production, delivery, and maintenance of 120 trains with India in May, CEO Kirill Lipa told reporters on Tuesday.
At the beginning of March, a consortium of Transmashholding’s subsidiary Metrovagonmash and India’s Rail Vikas Nigam won a tender to produce, deliver, and maintain 200 Vande Bharat trains in India with the price of each train at 1.2 billion Indian rupees, or U.S. $14.5 million.
Vedomosti business daily reported later that India decided to split the 200-train contract into two deals, and the winners of the auction would receive an order for 120 trains. The remaining 80 trains would be built by a consortium of India’s Titagarh and BHEL, the auction’s runner-up, and if the companies refuse, the government will send an offer to the other participants of the auction.
“It will happen in May,” Lipa said, adding that the joint venture will sign the contract for 120 trains all of which will be constructed in India.
“That is why the Make In India act is in force in the country, and it demands complete localization of production,” he said.
Metrovagonmash owns 70% in the joint venture, Rail Vikas Nigam Limited owns 25%, and Russia’s Lokomotivnye Elektronnye Sistemy (Locomotive Electronic Systems) owns 5%.
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