In new tender for Vande Bharat trains, Centre wants more local parts
The government has previously scrapped three previous global tenders for the ambitious project. To be clear, as per the new tender only companies registered in India can apply.Updated: Sep 21, 2020, 23:31 IST
The Indian Railways has floated a revised tender for procuring 44 semi-high speed Vande Bharat trains sets mandating 75% domestic component making it a domestic tender, the railway ministry announced on Monday.
The government has previously scrapped three previous global tenders for the ambitious project. To be clear, as per the new tender only companies registered in India can apply.
Railways had last month cancelled its global tender issued for manufacturing 44 sets of semi-high speed Vande Bharat trains, after a Chinese joint venture company CRRC Pioneer Electric (India) Private Limited emerged as the only foreign bidder.
According to officials aware of development, the tender is estimated to cost around Rs 2,000 crore.
“The revised tender is In line with Government of India’s preference for Make In India policy, the minimum local content percentage has been revised to 75%. It is the first big tender under revised DPIIT norms of Atma Nirbhar Bharat. Having atleast 75 % domestic components. This tender is now a domestic tender. It shall be local (indigenous) tender in which a two stage, reverse auction shall take place,” the ministry spokesperson said.
The Department for Promotion of Industry and Internal Trade (DPIIT) had revised public procurement order issued on June 4 to encourage domestic manufacturing. The tender is scheduled to open on November 17. A pre-bidding conference for the tender will take place on September 29, the ministry said.
The ambitious ‘Make in India’ project involves the manufacturing of 44 train sets comprising 16 coaches each for Vande Bharat.
Prime Minister Narendra Modi had flagged off the maiden run of a Vande Bharat train on the New Delhi-Varanasi route on February 15, 2019. The second such train service between New Delhi and Shri Mata Vaishnodevi Katra was flagged off by home minister Amit Shah on October 3, 2019.