Alstom, the French multinational company operating in the rail transport markets across the world, is seeking a "good price" in the ongoing negotiations for the Vande Bharat train project with Indian Railways. In an exclusive interview with CNBC-TV18, Alstom's Global CEO Henri Poupart-Lafarge expressed optimism about finalising the contract soon.
According to Lafarge, India's growth trajectory has been remarkable for Alstom, with the country's urban market showing buoyancy, particularly in the metro projects. He said the company has been actively involved in all major metro projects across India and has developed a strong relationship with Indian Railways, especially concerning locomotives.
"Our turnover in India has grown by over 40 percent this year... Over 25 percent of Alstom's engineering work is being done in India, and we want to take this figure to 33 percent as we aim to achieve the 1 billion euro target in terms of turnover from India."
The Indian Railways is aiming at rolling out the first Vande Bharat sleeper train by the first quarter of 2024. The railways has awarded contracts for the manufacture of 102 Vande Bharat chair trains and 200 Vande Bharat sleeper trains, so far.
Alstom emerged as the lowest bidder for the Rs 30,000-crore tender for the manufacturing and maintenance of 100 aluminium body Vande Bharat trains, in May, this year.
The French manufacturer had made a bid of Rs 151 crore per trainset. This bid was for manufacturing all 100 aluminium Vande Bharat rakes. The winning bidder for the Rs 30,000-crore contract to manufacture and maintain 100 aluminium Vande Bharat trains will receive Rs 13,000 crore on delivery, with an additional Rs 17,000 crore to be paid over 35 years for maintenance.
The Vande Bharat project holds immense significance for Indian Railways, and Alstom is determined to deploy new aluminium technology for the first time in this ambitious venture, the CEO said. Alstom views India as a key market, with the country being home to its largest employee base.
However, he emphasised that the current discussions should not be perceived as a "renegotiation" but rather a mutual effort to finalise the contract.
"We have named a competitive price for the Vande Bharat project and are confident that we will soon conclude the agreement. Our substantial engineering team in Bengaluru is dedicated to designing these advanced trains, and part of the manufacturing will take place in Gujarat," he added.
The Vande Bharat is a semi-high-speed train comprising 16 self-propelled coaches, which eliminate the need for a separate locomotive. This system, known as distributed traction power, has become popular worldwide for passenger operations. These trains feature improvements such as enhanced seating, an anti-bacterial system in the air conditioning, and the ability to accelerate to 160 km/hour in just 140 seconds.
