Vande Bharat: Russian rail major & Indian railway ink deal for manufacturing 200 Sleeper Vande Bharat trains | India News

NEW DELHI: Russian rolling stock (train manufacturer) major Transmashholding (TMH) and Rail Vikas Nigam Ltd (RVNL), an Indian Railways PSU, have resolved their differences and have signed the shareholders agreement for manufacturing of 120 Vande Bharat trains with sleeper coaches. The joint venture (JV) had bagged the approximately Rs 40,000 crore project quoting the lowest cost.
This will now pave the way for the JV to submit the bid security amount with the Indian railways for signing of the contract.
In its BSE filing on Tuesday, the RVNL said it has signed a share purchase agreement with a TMH subsidiary-Metrowagonmash, and Locomotive Electronic Systems (LES), a Russian equipment supplier.
The feud between the RVNL and TMH over the issue of majority shareholding in the JV company had become a major crisis and was posing a risk of derailing the contract awarded to TMH. However, railway officials had been maintaining that the issue would be resolved.
Sources said both sides arrived at an agreement after top government functionaries intervened in the matter. The TMH had taken up the matter with the senior most government authorities, including with the railways.
Earlier, in a letter to the TMH, the RVNL had sought to become a major shareholder in the JV which was rejected by the Russian company.