Railways cancel tender for 238 AC locals, will manufacture in own workshops

The tendering and procurement process was expected to delay the availability of the trains. To avoid this wait, the rail ministry decided to manufacture the rakes simultaneously at three Indian Railways production units

MUMBAI: In a bid to expedite the manufacture and supply of 238 AC local trains, the railway ministry has restarted the procurement process. The Mumbai Rail Vikas Corporation (MRVC), which was working on this massive multi-crore project for nearly a decade, has cancelled the tender for the 238 rakes that were to be procured under the Mumbai Urban Transport Project (MUTP).

Railways cancel tender for 238 AC locals, will manufacture in own workshops

On Wednesday, the MRVC confirmed that the rail ministry had decided to change the production strategy for the fleet. “The rakes will now be manufactured by the Integral Coach Factory (ICF), Chennai, Rail Coach Factory (RCF), Kapurthala, and Modern Coach Factory (MCF), Rae Bareli,” said MRVC chairman and MD Vilas Wadekar, adding that the first prototype was expected by 2027 as against the earlier deadline of 2030. “We are aiming to speed up the process and induct all 238 rakes by 2030,” he said.

MRVC had initiated the tendering process in September 2025. However, several rounds of discussions brought up various issues. The deadline for opening the bids was also extended three times, the latest being August 3, 2026, which too has been extended.

Under the earlier plan, a contractor was to be appointed, and production was to be undertaken in phases through technology partners. However, the tendering and procurement process was expected to delay the availability of the trains. To avoid this wait, the rail ministry decided to manufacture the rakes simultaneously at three Indian Railways production units.

This has not gone down well with the manufacturing companies. Industry sources said that global train manufacturers who had applied were unhappy with the decision, as MRVC failed to clarify their queries and instead opted to cancel the tender itself.

There are currently 23 AC locals run by Central and Western Railway. Of these, five recently inducted trains are of the under-slung design, in which most of the equipment is installed underneath the coaches to create additional space inside the passenger compartment. The 238 new AC locals will be based on this design, with further improvements incorporated. Each coach is expected to cost around ₹7 crore, putting the estimated cost of a 12-coach AC local at around ₹84 crore.

Routine maintenance and minor repairs of the new locals will be carried out at upgraded Central and Western Railway yards. For major maintenance and repairs, MRVC will establish dedicated facilities at Bhivpuri and Vangaon, which MRVC, under its revised policy, will construct itself.