Railway coach- contract to BHEL

New Delhi: The railway ministry may award a R26,000-crore contract for supply of coaches and locomotive components to Bharat Heavy Electricals Ltd (Bhel) on a nomination basis, going back on its earlier plan to invite bids from private firms under the public-private partnership (PPP) model.

The contract involves setting up of engine components and coach factories at West Bengal’s Dankuni and Kanchrapara regions, respectively, and long-term supply of coaches and components to the Indian Railway.

Over the last 15 months, the railways had been testing the projects under the PPP mode. It had shortlisted nine international engineering firms, including Alstom, Bombardier, Siemens, GE, Hitachi and Hyundai-Rotem, for financial bidding. Some of these players had even tied up with Indian firms, including Bhel and Titagarh Wagons. However, after shortlisting bidders, the railways restarted the process of due diligence and kept postponing financial bids.

The transporter is learnt now to have written a letter to Bhel,...