Kinet Railway plans Phase 1 Capital Investment for Vande Bharat manufacturing in India

New, India (Metro Rail Today): Kinet Railway Solutions, an Indo-Russian joint venture, is progressing with plans for the manufacturing of 1,920 semi-high-speed Vande Bharat coaches, with the first phase of capital expenditure (capex) focused on establishing its production facility in Latur, Maharashtra. The JV has approached several financial institutions, including Russia’s Sberbank, one of the largest banks in the country, to secure funding for the initial phase. The planned investment, expected to be a mix of equity and debt, could reach up to $200 million, sources familiar with the development told BusinessLine.

The initial capital outlay will focus on upgrading the existing infrastructure at the Latur unit, which has been handed over to Kinet for the production of Vande Bharat trainsets. While Kinet was unavailable for comment, insiders confirmed that material procurement for the construction of prototypes is set to begin soon.

Kinet JV Details and Production Plans

Kinet Railway Solutions is a joint venture between India’s Rail Vikas Nigam Ltd (RVNL) and Russian engineering firms Metrowagonmash and Locomotive Electronic Systems (LES), operating under a 25:70:5 equity ratio. The venture was formalized in September 2023, with a contract to design, manufacture, and maintain Vande Bharat semi-high-speed trains. The agreement also involves upgrading existing government manufacturing units and trainset depots.

According to officials, the JV is in the process of expanding the Latur facility, which currently has the capacity to produce 16 coaches but will need to accommodate at least 24. This expansion will require further investments in infrastructure. Discussions regarding the procurement of materials for the construction of prototypes are also underway, with a target to roll out the first Vande Bharat trainset prototype by the end of 2026.

Design and Cost Considerations

One of the key steps in the project is the completion of the train mock-up, which serves as a model for visualizing and testing design ideas. Officials revealed that the mock-up for the new Vande Bharat train is already ready, with ongoing meetings focused on finalizing design elements. The average cost per Vande Bharat trainset is estimated at ₹120 crore, though concerns have been raised regarding potential design changes and the resulting impact on production timelines and costs.

Discussions surrounding the scope of work and potential design modifications are ongoing at various levels within the project team. These adjustments may affect both the cost and timeline, with some sources noting that negotiations are still under consideration by the Ministry of Railways and the Railway Board.

Kinet and India-Russia Diplomatic Ties

The Kinet JV, part of the broader initiative to manufacture Vande Bharat trains, is expected to be highlighted as a significant example of India-Russia cooperation in the railway sector. As the project moves forward, it could be showcased as a success story during Russian President Vladimir Putin’s potential visit to India, underscoring the growing strategic ties between the two nations in the fields of technology and infrastructure development.

As Kinet moves ahead with its manufacturing plans, the JV is poised to play a pivotal role in the production of Vande Bharat trains, an essential part of India's semi-high-speed rail revolution. The first phase of investments is crucial for ensuring the timely and efficient rollout of this ambitious project, with both the Indian and Russian stakeholders working closely to meet production and design milestones.

New Development: Maintenance Depot in Jodhpur

In addition to its manufacturing plans, Kinet Railway Solutions has announced the commencement of groundwork for a new maintenance depot in Jodhpur, Rajasthan. This depot is a key component of Kinet’s ongoing commitment to ensuring world-class maintenance and operational efficiency for the upcoming Vande Bharat Sleeper Trains. The new Jodhpur facility, alongside Kinet’s existing maintenance centers in Delhi and Bengaluru, will be equipped with state-of-the-art technology, ensuring seamless operations and high reliability for the next 35 years.

The Jodhpur depot will serve as a critical hub for the maintenance and upkeep of the Vande Bharat Sleeper Trains, which are set to become a flagship feature of India's rail network. By investing in these advanced maintenance facilities, Kinet is demonstrating its dedication to supporting India’s railways with cutting-edge infrastructure that will help maintain the Vande Bharat fleet in optimal condition, ensuring long-term efficiency and passenger safety.

Future Outlook

With a focus on innovation and efficiency, the Vande Bharat project is set to transform India’s railways, offering faster, more comfortable travel options for passengers. While challenges such as design modifications and cost negotiations remain, the Kinet JV's efforts signal a promising future for India’s railway modernization initiatives. If successful, this project will not only strengthen India’s domestic rail industry but also reinforce the growing collaboration between India and Russia in the field of high-tech engineering solutions.

As work progresses on the Latur facility, the Jodhpur maintenance depot, and the prototype design, stakeholders are optimistic that the project will meet its goals and deliver the first semi-high-speed Vande Bharat trainsets by 2026, with full-scale production ramping up thereafter.