The largest Russian company in the transport engineering industry, Transmashholding (TMH), and Rail Vikas Nigam Limited (RVNL), a subsidiary of Indian Railways, signed a shareholder agreement on July 25, according to an announcement made by the Russian holding company.
Under the terms of the agreement, Kinet Railway Solutions Ltd. will be established as the company in charge of conducting a project for Indian Railways that will involve the supply of Vande Bharat trains and their subsequent maintenance. According to the paper, the Indian side of the newly created joint venture would hold 25% of the ownership, while the Russian side would hold 75%.
TMH and RVNL have been given the licence to manufacture 120 16-carriage Vande Bharat long-distance electric trains with sleeping accommodations for $1.7 billion due to a tender organised by the state-owned firm “Indian Railways.” On March 1, 2023, the results were disclosed to the public.
Within the first five years after the deal is signed, the trains are expected to be produced in Latur, located in Maharashtra in India. The future upkeep of the equipment is scheduled to be carried out for 35 years.
Signing a contract with “Indian Railways” is expected to be the next step in implementing the project after it has been approved.
This deal marks TMH’s first contract on the Indian market and is the company’s most substantial in terms of the transaction’s financial worth and the quantity of rolling stock ordered.
