NEW DELHI(Metro Rail News): Indian Railways PSU, Rail Vikas Nigam Ltd (RVNL), and Russian rolling stock manufacturer, Transmashholding (TMH) have settled their differences and signed a shareholders agreement for producing 120 Vande Bharat trains with sleeper coaches. The joint venture had been declared as the lowest bidder for this project.
The resolution allows the JV to proceed with submitting the bid security amount to Indian railways for contract signing. RVNL announced the share purchase agreement with TMH subsidiary-Metrowagonmash and Russian equipment supplier, Locomotive Electronic Systems (LES), in its BSE filing.
Previously, RVNL had requested a greater share in the JV, which TMH had rejected.
The dispute over majority shareholding in the JV was a major crisis threatening to derail the TMH’s awarded contract. However, with intervention from top government officials, the issue was resolved, as TMH engaged with senior government authorities and railways.
