RVNL inks shareholder agreement for supply of 120 Vande Bharat trains

31 Jul 2023 , 10:31 AM

Rail Vikas Nigam Limited (RVNL) has entered into a shareholder agreement with Transmashholding’s subsidiary (TMH) and Locomotive Electronic Systems (LES) for the supply of 120 Vande Bharat Train Sets within the time limit specified.

The agreement, signed on July 29, 2023 in New Delhi, calls for the formation of a special purpose vehicle (SPV) called ‘Kinet Railway Solutions Ltd. (KRSL)’ to produce, supply, and maintain the blue and white trains.

KRSL, a newly registered company, would manufacture and supply 120 Vande Bharat electric passenger sleeper train units. Furthermore, the SPV will provide maintenance services for these train sets for the next 35 years.

The Ministry of Railways granted L1 status to this Russian-Indian collaboration, TMH-RVNL, earlier in March. It was the lowest bidder for the production of 200 sleeper variants of Vande Bharat trains. The company has made bids for the Rs 58,000 crore contract to produce new-age trains using cutting-edge technology.

These blue and white trains are expected to be built at a railway factory in Maharashtra’s Latur. The additional 80 blue and white trains will be developed at Chennai-based Integral Coach Factory (ICF).

At around 10.30 AM, RVNL was trading 2.32% higher at Rs 123.75, against the previous close of Rs 120.95 on NSE. The counter touched an intraday high of Rs 124.25.

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