BENGALURU: With repeated tenders for the supply of 306 coaches for the Bengaluru Suburban Rail Project (BSRP) not getting any successful bidder, the nodal agency for implementing the project -- Rail Infrastructure Development Enterprises Karnataka (K-RIDE) -- has approached the Centre’s think tank, Niti Aayog, seeking permission to adopt an equity funding model.
K-RIDE has asked whether the cost of Rs 3,672 crore for the AC coaches can be borne equally by the Central and state governments.
Sources told TNIE, “It was discussed with Railway Minister Ashwini Vaishnaw and Minister of State for Railways V Somanna when they visited Bengaluru on Sunday. They responded positively. It was also discussed with Niti Aayog Vice-Chairman Suman Bery during a meeting at Vidhana Soudha last week. K-RIDE has been asked to send a formal proposal.”
The procurement of coaches for Suburban Rail has been delayed enormously. “We finally cancelled the tender last month after repeated attempts. We have decided to give up the Public-Private Partnership model and go for the equity funding pattern,” another source said.
On tendering, he said, “We first called for tenders in two stages for supply of coaches. During the first round on June 8, 2023, the technical round, three agencies Bharat Earth Movers Ltd, Bharat Heavy Electricals Ltd and Spanish firm Construccionnes y Auxiliar de Ferrocarriles (CAF) qualified. The financial tender was called for on December 12, 2023 with three months given to submit their interest. It was then repeatedly extended due to repeated requests from bidders. On July 12, 2024, we cancelled the tender and asked the three companies that qualified in the technical round alone to approach us. After a month, none of them applied. Last month (on August 12), we decided to change the funding model itself and go in for funding from governments only.”
Unenthused manufacturers
He said, “It will take up to two years for the first set of coaches to be run on trial and inducted. If the funding is finalised, we can get the coaches from the firms shortly.”
On the reasons for lack of enthusiasm among coach manufacturers, an official said, “There are a maximum of eight manufacturers globally. They need to obtain funding from a bank for manufacturing them and K-RIDE will pay them every month with coaches paid for every hour of usage. It will take them up to 30 years to get back their investment.”
Another issue was that banks wanted the state and central governments to stand guarantee for the loan obtained by the bidders, but both the governments were reluctant.