The Mumbai Railway Vikas Corporation (MRVC) has invited bids for 2,856 air-conditioned (AC) Vande Metro coaches for the Mumbai suburban rail network. The project, valued at around Rs 21,000 crore, marks one of the biggest opportunities for the country’s coach manufacturers in recent years. Nuvama, in a report, stated that, “After a lull of almost two years, activity has picked up in the coach manufacturing space in India.”
Three key contenders: Alstom, BEML, Titagarh Rail
The contract will include comprehensive maintenance for 35 years and the setting up of two new depots under the Mumbai Urban Transport Project (MUTP) phases III and 3A.
Nuvama noted that the focus is on three companies—Alstom, BEML and Titagarh Rail—who are likely contenders for the project as the tender mandates local manufacturing, and these three already have established coach production units in the country.
AC coach order can be split between two contenders
The Nuvama report highlighted that MRVC may award the entire order to a single bidder, who will get 7.5 years to complete delivery. If the order is split between two bidders, the first will supply 1,715 coaches and the second 1,141 coaches within 6.5 years. The first 12-car prototype rake must be ready in 24 months, and the second in 26 months.
Nuvama adds that if the tender is divided between two players, “the third player can bid for future Vande Bharat/metro rail coach projects to shore up its order book without facing much competition.”
Nuvama remains positive on Titagarh Rail
Nuvama Research noted that after a two-year lull, the coach manufacturing space has picked up pace. Several metro projects have awarded rolling stock contracts in the last six months, and the latest tender will keep order inflows strong. “We remain positive on Titagarh Rail in this space,” the brokerage said.
Mumbai suburban network set for major capacity boost
MRVC, which is jointly owned by the Ministry of Railways and the Maharashtra government, plans to procure 238 AC local trains under MUTP-III and 3A. While MUTP-III includes 47 trains, MUTP-3A will add 191 more, further expanding the capacity of Mumbai’s lifeline.