Mon Oct 21 06:12:36 UTC 2024: Key points from the article:

1. **Joint Venture Project**: Russia’s Transmashholding (TMH) and India’s Rail Vikas Nigam Ltd (RVNL) are engaged in a $6.5 billion project to build Vande Bharat trains, which is facing regulatory and technical hurdles.

2. **Upcoming Meetings**: These issues are expected to be discussed during Prime Minister Narendra Modi’s visit to Kazan for the Brics Summit on October 22, where he will meet Russian President Vladimir Putin.

3. **Project Challenges**: The joint venture has encountered several setbacks since winning a ₹58,000-crore contract in March 2023 to manufacture 200 Vande Bharat trains, which was later reduced to 120 trains, cutting the project’s size to ₹36,000 crore.

4. **Shareholding Structure Issues**: TMH sought approval to change the shareholding structure of the special purpose vehicle (SPV) Kinet Railway Solutions Ltd, which has remained pending due to concerns related to avoiding Western sanctions against Russian entities.

5. **Recent Developments**: A delegation from TMH visited India in September to address these hurdles. The ongoing discussions include a new proposal to change the shareholding percentages among Russian entities without altering RVNL’s stake.

6. **Delays Expected**: Additional demands from the Indian government, such as increasing the number of cars per train and adjusting the total train sets, may further delay the project’s timeline.

7. **Project Timeline**: Current projections indicate manufacturing should commence by November-December 2024, with prototypes expected by September 2025. There are plans for maintenance depots in Jodhpur, Delhi, and Bangalore.

8. **Financial Commitments**: RVNL has already injected ₹151.70 crore into the project, with plans for further investment and infrastructure readiness described in prior earnings calls.

Read More