RVNL may scrap pact with Turkey’s Tumas amid geopolitical strains, eyes new global partners: Report

The development also comes against the backdrop of worsening India-Turkey ties.

State-run Rail Vikas Nigam Ltd (RVNL) is likely to call off its year-old agreement with Turkish engineering firm Tumas, as the partnership has failed to yield results, Mint reported, citing two people familiar with the development.

Signed in April 2024, the memorandum of understanding (MoU) between RVNL and Tumas India Pvt. Ltd was aimed at joint collaboration on infrastructure projects, including metros, railways, and other public transport initiatives. However, with no substantial progress made over the past year, RVNL may soon place the MoU in abeyance or scrap it altogether.

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“RVNL may put the memorandum of agreement in abeyance, and nix it completely later, as it had made no progress since being signed a year back,” Mint quoted a source as saying. The company is now evaluating whether such a partnership is needed at all, especially since it is actively pursuing infrastructure collaborations with global firms from the UAE, Europe, South Korea, and Spain, the report added.

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The development also comes against the backdrop of worsening India-Turkey ties. Tensions have escalated after Turkey extended support to Pakistan during its recent military conflict with India. Earlier this month, the Indian government withdrew the security clearance of Turkish ground handling firm Çelebi Aviation’s India unit, citing national security concerns, a move that affected its operations at major airports including Delhi and Mumbai.

While queries sent by Mint to the railway ministry and RVNL went unanswered, Moneycontrol has not independently verified the details.

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According to Mint, the Tumas MoU has become less relevant for RVNL, which is now leaning on partnerships with other international players to strengthen its construction and engineering capabilities, particularly in metro, EPC (engineering, procurement, and construction), and solar power projects.

The company is also aggressively scaling its overseas footprint. It recently completed the UTF Harbour project in the Maldives and is eyeing infrastructure opportunities across West Asia, Africa, South America, and South Asia. RVNL is currently bidding for projects worth nearly Rs 400 billion and is exploring new models like build-operate-transfer (BOT) in its diversification push.