Indian Railways signs contract with Kinet Railway Solutions for Vande Bharat trains

Indian Railways signs contract with Kinet Railway Solutions for Vande Bharat trains

The Indian Railways has signed a supply contract with Kinet Railway Solutions, an Indo-Russian joint venture, for the manufacturing of Vande Bharat trains. This partnership comes amidst concerns surrounding the viability of the joint venture due to recent US sanctions against Russian officials associated with the Russian partners in the project. Kinet Railway Solutions will be responsible for manufacturing and maintaining 120 Vande Bharat passenger sleeper train sets, as well as providing maintenance services for 35 years. The partnership between Kinet Railway Solutions and Indian Railways has effectively addressed concerns about the project’s future. The joint venture includes Russian companies Metrowagonmash (MWM) and Locomotive Electronic Systems (LES), along with India’s Rail Vikas Nigam Limited (RVNL). The dispute between the Indian and Russian partners regarding majority ownership had previously delayed the signing of the contract. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently imposed sanctions on Russian elites, including Andrei Removich Bokarev, who served as president of Transmash, a subsidiary of Transmashholding JSC Group (Transmash), a locomotive and rail equipment manufacturer. Despite these sanctions, Kinet Railway Solutions has stated that they will not affect the Vande Bharat project in India. The agreement between Kinet Railway Solutions and Indian Railways brings stability to the joint venture and paves the way for the successful implementation of the Vande Bharat project.

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