BHEL, Titagarh Rail gain on winning Rs 24,000-crore contract for Vande Bharat trains

BHEL and Titagarh Rail Systems consortium signed a contract to manufacture Vande Bharat trains.

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Bharat Heavy Electricals (BHEL) and Titagarh Rail Systems, formerly Titagarh Wagons, gained 2  percent and 3 percent in the morning on June 16 after their consortium signed a contract to manufacture Vande Bharat trains. Titagarh Wagons rose to its 52-week high of Rs 430.

A consortium led by BHEL and Titagarh Rail Systems signed a contract for the manufacturing and supply of 80 fully assembled Vande Bharat sleeper train sets by 2029 and their maintenance for 35 years.

This is the first time that the Indian Railways awarded a contract of this value to an Indian consortium. The estimated value of the contract is Rs 24,000 crore.

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“We are committed to becoming a modest contributor to the Prime Minister's AatmaNirbhar vision. Vande Bharat trains have revolutionised the way we travel, and we are proud to be a part of the government’s Make in India initiative," said Umesh Chowdhary, Vice Chairman & Managing Director of Titagarh Rail Systems.

The company's focus on adopting the latest technology to boost engineering prowess would help it build state-of-the-art railway trainsets at par with global standards, he said.

The order would be executed over six years. The first prototype would be delivered within two years after which the remaining deliveries would be made Chowdhary added.

BHEL also signed a memorandum of understanding (MoU) with Volvo Eicher Commercial Vehicles for taking up a “joint project for development & deployment of Type – IV Cylinders (Hydrogen / CNG)” in the commercial vehicle segment.

At 9.31 am, Titagarh Wagons was quoting at Rs 424.75, up Rs 8.55, or 2.05 percent, and Bharat Heavy Electricals was quoting at Rs 86.15, up Rs 1.68, or 1.99 percent, on the BSE.

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