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Delays in the Indian Railways proposed joint venture with Kinet Railway Systems for manufacturing Vande Bharat sleeper trains have resulted in a ?76 crore notional loss for Rail Vikas Nigam Ltd (RVNL), the railway PSU executing the project. The setback has pushed the design timeline to the first half of 2026, with manufacturing now expected to start later. Kinet Railway Solutions, a joint venture between RVNL and Russian rail giant Transmashholding (TMH), was initially set to manufacture 120 trainsets of 16 coaches each, with prototypes expected by 2025. However, in June-July 2024, the Railways sought a design revision, altering the contract to 80 trainsets with 24 coaches each—while maintaining the overall target of 1,920 coaches. The subsequent back-and-forth over design changes, particularly regarding toilet layouts and pantry cars, stalled approvals, further delaying the project. RVNL confirmed the financial impact during its investor call, with Chairman and Managing Director Pradeep Gaur stating, “We are showing a ?76 crore loss under Kinet as manufacturing has yet to start despite significant investments. Once production begins, revenue will flow in, reversing this loss.” Auditors Gandhi Minocha & Co noted RVNL’s share of net profit from Kinet and other JVs, but the delay in approvals has hampered revenue generation. Gaur emphasized that despite setbacks, the project remains profitable, citing the cost efficiency of joint production with TMH compared to Indian Railways’ in-house production at ?90 crore per trainset. Meanwhile, Kinet officials said they are still awaiting formal notification from the Railways on the revised design approval. The Indian Railway Ministry has not responded to queries regarding the delays. The JV’s production was initially on track, with a fully equipped factory ready for manufacturing. However, the shift from the 16-coach to 24-coach design—and subsequent reversion to the original 16-coach plan—has delayed the initiative by eight to nine months. The first prototype, originally scheduled for September-October 2025, is now expected in early 2026. |
