New Vande Bharat Train Rakes - SIX Bidders Background Likely Winners

This Video shares the details of the SIX bidders for the New Vande Bharat Rakes as per the RDSO's new revised specification, analyses their capabilities and predicts a possible outcome and way forward for ICF Chennai in the manufacture of these Train sets.

Video Chapters for Easy Navigation
0:00 - The Tender & Background
1:14 - The SIX Contenders
2:00 - CRRC Joint Venture
2:37 - BHEL A strong Contender
3:28 - Medha Servo Drives - Another Strong Contender
3:57 - Balance 3 Contender
5:00 - Summary, Cost
6:53 - Guessing the Winner, Way Forward

Video Credits - Ashwin RF Chennai, Natarajan Sunny RF, Mayank Karosia ( Indore Junction ), Arun Somanathan
This current tender was floated on December 22 last year by the Integral Coach Factory (ICF), Chennai, and was opened on Friday (July 10). There are Six contenders for this tender including a Indo-China joint venture, CRRC Pioneer Electric (India) Private Limited. Major international players like Bombardier, Alstom, Siemens, CAF, Talgo and Mitsubishi did not participate in the bids. The six bidders are CRRC Pioneer Electric (India) Private Limited, Bharat Heavy Electricals, Hyderabad-based Medha Group, Electrowaves Electronic Pvt Ltd , Bharat industries Sangrur and Mumbai-based Powernetics Equipments Pvt Ltd.

CRRC Pioneer is a joint venture with CRRC Corporation of China. Headquartered in Beijing, CRRC Corporation Limited (CRRC) has 46 wholly-owned & majority-owned subsidiaries and over 180,000 employees. CRRC is the world's largest supplier of rail transit equipment, High Speed Train sets with the most complete product lines and leading technologies. Its main businesses cover the R&D, design, manufacture, repair, sale, lease and technical services for rolling stock, urban rail transit vehicles. It ranks 266th on the Fortune Global 500 List. How the Railways would handle the bid remains to be seen in the current scenario of engagement with China.

BHEL need no introduction, a Navaratna PSU and its equipment contributes to about 60% all power generation in India. Its transportation division is a major supplier of equipment to Railways - Electric Traction equipment, Traction Motors for Electric / Diesel Electric locomotives manufactured at CLW and DLW and also DEMU train sets, Traction transformers and HOG Transformers for WAP7 etc.. It had designed and supplied the Dual current Electric Loco WCAM2/WCAM3 for Central Railway and the Tiger Face Livery WAG7's and WAG8H locomotives for all India Operation. A very strong Contender for this tender.

Medha Servo Drives is a Hyderabad privately owned company and is a fully integrated supplier of Traction, Propulsion Systems, Rolling Stock and signalling systems. It had supplied all the 3 phase Traction and propulsion systems for the first 2 Vande Bharat trains and is currently supplying traction systems for 3phase EMU's and transformers of the HOG system to be used in WAP7 locomotives. It is also a very strong contender.

Regarding lack of participation from International majors here is the reason - The tender floated by ICF is for supply of Propulsion systems and other Electric components and NOT for complete Train Sets. The major players make their money on complete products designed and manufactured by them. Why we would they want to encourage Make In India if they are just going to be Component suppliers. They would have loved a JV or a Transfer of Technology kind of arrangement rather than a component supplier.

Going by the cost of manufacturing the first Train 18 which was launched last year at an expense of nearly Rs 100 crore out of which Rs 35 crore was for the propulsion system alone, the present tender for 44 such kits would be worth over Rs 1,500 crore which is $200 Million.

It is quite possible that both BHEL and Medha would be shortlisted and the order split between the two with the rest of the 3 bidders supplying some items like Lightings, Air-Conditioning, Battery Backup etc, Wheel Brakes etc.

Considering that Train sets would be the future of Inter City Travel / Overnight journeys Railways would want more than ONE manufacturer and at later stages they would rope in Rail Coach Factory, Kapurthala and the Modern Coach Factory, Raebareli just like what they did with LHB coaches with ICF also producing these LHB coaches.

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