Bengaluru Suburban Rail Project: BSRP To Buy 306 AC Coaches As K-Ride Abandons Leasing Plan

After failing to attract financial bids for leasing coaches for the Bengaluru Suburban Rail Project (BSRP), Rail Infrastructure Development Company (Karnataka) Limited (K-Ride) has opted to directly purchase 306 air-conditioned coaches. K-Ride, responsible for implementing the BSRP, plans to request an equity fund of ₹4,270 crore from both the state and central governments-its partners in the project-over a five-year period to finance this procurement.

Initially, K-Ride had appointed RITES as the transaction advisor for introducing rolling stock under a Public-Private Partnership (PPP) model. Following RITES' recommendations, a tender was issued for the supply, operation (including onboard staff), and maintenance of the rolling stock for a period of 35 years. In June 2023, three companies-Spain-based CAF and major Indian PSUs BHEL and BEML-qualified to supply air-conditioned coaches. Financial bids were invited on December 29, 2023, with the deadline extended multiple times due to requests from bidders, the latest being August 22, 2024. However, despite these extensions, no bids were received. A significant factor in the lack of bids was the unmet demand for a sovereign guarantee.

A source from K-Ride noted that there has been no successful procurement of rolling stock under the PPP model in India to date. K-Ride has secured agreements with KfW and the European Investment Bank (EIB) for external funding of the suburban rail project. However, a condition for disbursement of these funds is that K-Ride must provide an executed agreement for the procurement of rolling stock by September 2025.

Given the challenges, K-Ride is also considering the possibility of procuring Vande Bharat Metro coaches from the Integral Coach Factory (ICF) in Chennai. With some modifications, such as reducing the coach weight from 53 tonnes to 42 tonnes, these coaches could be adapted for use on BSRP's viaduct.

Construction on two of the BSRP's four corridors-Byappanahalli to Chikkabanvara (corridor 2) and Heelalige to Rajankunte (corridor 4)-is currently underway. In the first phase, K-Ride plans to open a 7-km stretch of corridor 2, the Yeshwantpur-Chikkabanavara line, for commercial operations. Timely procurement of rolling stock is critical to the project's success, as delays in securing coaches have already affected other projects, such as BMRCL's 19-km rail line from RV Road to Bommasandra.After failing to attract financial bids for leasing coaches for the Bengaluru Suburban Rail Project (BSRP), Rail Infrastructure Development Company (Karnataka) Limited (K-Ride) has opted to directly purchase 306 air-conditioned coaches. K-Ride, responsible for implementing the BSRP, plans to request an equity fund of ₹4,270 crore from both the state and central governments-its partners in the project-over a five-year period to finance this procurement.

Initially, K-Ride had appointed RITES as the transaction advisor for introducing rolling stock under a Public-Private Partnership (PPP) model. Following RITES' recommendations, a tender was issued for the supply, operation (including onboard staff), and maintenance of the rolling stock for a period of 35 years. In June 2023, three companies-Spain-based CAF and major Indian PSUs BHEL and BEML-qualified to supply air-conditioned coaches. Financial bids were invited on December 29, 2023, with the deadline extended multiple times due to requests from bidders, the latest being August 22, 2024. However, despite these extensions, no bids were received. A significant factor in the lack of bids was the unmet demand for a sovereign guarantee.

A source from K-Ride noted that there has been no successful procurement of rolling stock under the PPP model in India to date. K-Ride has secured agreements with KfW and the European Investment Bank (EIB) for external funding of the suburban rail project. However, a condition for disbursement of these funds is that K-Ride must provide an executed agreement for the procurement of rolling stock by September 2025.

Given the challenges, K-Ride is also considering the possibility of procuring Vande Bharat Metro coaches from the Integral Coach Factory (ICF) in Chennai. With some modifications, such as reducing the coach weight from 53 tonnes to 42 tonnes, these coaches could be adapted for use on BSRP's viaduct.

Construction on two of the BSRP's four corridors-Byappanahalli to Chikkabanvara (corridor 2) and Heelalige to Rajankunte (corridor 4)-is currently underway. In the first phase, K-Ride plans to open a 7-km stretch of corridor 2, the Yeshwantpur-Chikkabanavara line, for commercial operations. Timely procurement of rolling stock is critical to the project's success, as delays in securing coaches have already affected other projects, such as BMRCL's 19-km rail line from RV Road to Bommasandra.