NEW DELHI: The Indian Railways will procure 44 Vande Bharat train sets for Rs 2,000 crore through reverse auction, which officials said is perhaps the biggest such bid. In this “domestic tender”, the qualified bidders will quote their prices online and it will be live. The bidder quoting the lowest price will get the order to produce these train sets.
The revised tender floated on Monday is being termed as “domestic” for two reasons. First, the products will have minimum 75% local content compared to 50% in the earlier bid and second, only companies registered in India will be allowed to bid.
“These provisions have been made to promote domestic manufacturing and Make in India under the Atmanirbhar Bharat scheme and this is the biggest tender since the launch of the self-reliant India initiative,” said an official.
According to the tender, the train sets will be manufactured at ICF (Chennai), RCF (Kapurthala) and MCF (Rae Bareli).
Officials said under the reverse auction system, once the companies qualify in the first stage, they will be allowed to bid. The online system will eliminate half of the bidders who quote high prices. “Only bidders quoting the least price will get an hour to revise their bid price. They won’t know about the price quoted by other participants,” said a source.
Earlier the effort to bid out the procurement of these trains had failed thrice. The railway board has now taken charge with the focus now on distributing the work to all three units for faster production of the train sets.