30 Nov 2024
Moscow wants to set up manufacturing facilities in India to cater to domestic demand.
As Russia aims to cater to its growing domestic demand, it is considering investing in train and component manufacturing in India. Moscow already has a few supply contacts from India that it intends to expand.
The news came a week after Indian Railways awarded the contract for making the new version of Vande Bharat Express trains to three companies, including Kinet Railway Solution – a joint venture between Transmashholding (TMH), which is a Russian rolling stock company, and Rail Vikas Nigam Limited. Kinet will manufacture and maintain 1920 coaches for Vande Bharat sleeper coaches for 35 years, as per a ₹55,000 crore agreement.
TMH CEO Kirill Lipa outlined three reasons why Russia wants to manufacture trains in India. The first is the favourable investment climate, including low interest rates. TMH plans to develop facilities in India to manufacture trains and components to serve the Indian market and abroad.