Railways to issue fresh tender for train sets

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After failing to get any response from the shortlisted bidders, Indian Railway is actively mulling going for a fresh tender with increased stake and incorporating new conditions to revive the ambitious train set project.

In a setback to the Railways' plans, none of the five shortlisted bidders for the Rs 2,500 crore project submitted financial bids last month.

"We are re-examining the issue and a decision will be taken shortly to issue a fresh tender incorporating some changes balancing bidders' requirement with railways' interest," said a senior official involved in the project.

Railways had floated a global tender for procurement-cum-maintenance and manufacture of 15 train sets with 315 coaches in June last year.

Five bidders had qualified for the initial round in November, including consortia of CAF and Bombardier; Hitachi with Ansaldo and Kawasaki; Toshiba with state-run Bharat Heavy Electricals; Alstom with government -owned Bharat Earth Movers; and Siemens. Their deadline for bids had been extended twice in December and February.

"None of the five bidders submitted their financial quotations by May 3, the last day of the submission of the bids. The companies have asked for increasing the quantum of work under the tender," a senior Railway Ministry official said.

Railway Minister Suresh Prabhu had in his budget speech proposed to increase the current procurement by 30%.

The railways is considering increasing the number of train set coaches to be manufactured from 315 to 415 which will result in an increase in the project cost from Rs 2500 crore to Rs 3000 crore. It is also considering allowing its existing facilities for manufacture of train sets.

A train set, much like Delhi Metro trains, comprises several coaches which are individually powered by a propulsion system, eliminating the need for locomotives. It also has faster acceleration and deceleration rate than the regular trains.

According to the plan, train sets are to be used for Rajdhani and Shatabdi services.