Medha Servo Emerges as Lowest Bidder for Vande Bharat trainsets Project

The Indian Railways has disqualified the bid of a consortium of a Chinese company for manufacturing of 44 Vande Bharat trainsets costing nearly Rs 1,800 crore. The development, left only two valid bids of BHEL and Medha Servo Drives, which has quoted the lowest bid.

Only three players had bid for this big contract including the CRRC Pioneer Electric India, a joint venture between Beijing based CRRC Yongji Electric Ltd and India’s Pioneer Fil-Med Ltd, which has its plant in Haryana.

Before applying for the train set procurement tender, the CRRC-Pioneer Electric India had applied for registration here after it was made mandatory for companies with beneficial ownership in countries sharing land borders with India to get registered for participating in public procurement contracts.

The JV had also put its bid when the railways had invited bids for procurement of these trains early this year. The tender was cancelled and later the ministry had tweaked the tender conditions to make it an indigenous tender with stipulation of minimum local content of 75%.