Indian Railways has renegotiated its ₹35,000 crore Vande Bharat order with the Indo-Russian JV, Kinet Railway Solutions. The new order consists of 80 trainsets, instead of 120; but with larger capacity having a 24-coach configuration, instead of originally planned 16. Kinet Railway Solutions reportedly has agreed to the change in clause, and is awaiting some final confirmation of the same from Railways, sources in the know told businessline.
Kinet, is a JV between India’s Rail Vikas Nigam Ltd (RVNL), a Railways-owned undertaking, and the Russian engineering company Metrowagonmash and Locomotive Electronic Systems (LES), in a 25:70:5 ratio. It will be manufacturing these new semi-high speed trains (Vande Bharat) at Latur.
According to its terms of incorporation, in April 2023, the JV has a manufacturing and maintenance contract for Vande Bharat trainsets. The contract includes upgrading government manufacturing units and trainset depots.
“So there were some discussions and negotiations between the Railways and the JV. And apparently Kinet has agreed to the changed contract clauses. So, it will now manufacture of 80 trainsets of 24 coaches each; costs being same. Communications between Kinet and Railways are underway. Some final confirmation is awaited from the Ministry; but work is expected to start soon on the project,” an official said.
Design changes such as change in train configuration could delay prototype and final offerings roll-out.
Kinet did not respond to queries by businessline; while Indian Railways is yet to respond on queries.
Further Investment in Latur
The initial project details outline the manufacture of 200 Vande Bharat trainsets of the sleeper version, each consisting of 16 cars along with comprehensive maintenance thereof for 35 years.
The L1 selected bidder will be required to manufacture and assemble 120 trainsets at Railway’s Marathwada Rail Coach Factory (MRCF) in Latur (Maharashtra), while the L2 selected bidder would have to manufacture 80 trainsets at ICF in Chennai (Tamil Nadu). Kinet was the L1 bidder, while BHE-Titagarh Rail System consortium was the L2 bidder, under the same pricing structure.
According to Railway officials, Kinet has been handed over the Latur facility and the company will be making “further investments” in the facility constructed by RVNL. For instance, the shed has capacity for 18 coaches, but will now have to accommodate “at least 24” which will require further capex. Similarly, material procurement for construction of prototypes is expected to start soon.
The average cost is working out to be ₹10–15 crore per trainset.
“Kinet will be approaching Indian banks for loans and working capital soon,” the official said adding that the first prototypes are expected either in December 2025 or somewhere around “mid-2026”; an at least 3–6 month delay over the original timeline of September 2025.