NEW DELHI: India and Russia have resolved their dispute over the shareholding in a joint venture company after a consortium of their companies won a Rs 30,000- crore contract to build 120 Vande Bharat trains and maintain them for 35 years. Rai l Vikas Nigam Ltd (RVNL), a Navratna company under the Indian Ministry of Railways, had been trying to renegotiate the original shareholding with its Russian partner Metrowagonmash after the two companies jointly won the Indian Railway contract.
RVNL and Metrowagonmash had entered into an agreement to jointly bid for the Vande Bharat tender and create a Special Purpose Vehicle (SPV) to implement the project. Under the pact, the Russian company would hold a majority stake.
However, after winning the tender, RVNL wrote to Metrowagonmash on April 25, 2023, requesting that the shareholding be revised to give it a 69% stake, leaving 26% for the Russian firm and 5% for a smaller partner, Locomotive Electronic System (LES).
The Russians did not agree, insisting that the two sides respect and follow the original agreement. Sources said the matter has now been resolved “at the highest level” of the two governments and the two companies will now move forward as per the original agreement.
This paper was the first to break the news that the two sides were engaged in a tussle over shareholding after winning the contract. As per the original understanding between the two companies, RVNL has incorporated a private company Kinet Railway Solutions Ltd which will act as the SPV that will sign the manufacturing-cum-maintenance agreement with the Ministry of Railways. Metrowagonmash will own 70%, RVNL 25% and LES 5% in this SPV. The Russian firm will now move funds for the transfer of shares.