120 Vande Bharat trains fast-tracked for production after RVNL joint venture receives fresh boost

India’s ambitious plan to expand its semi-high-speed rail network has gained momentum as Kinet Railway Solutions, a joint venture (JV) between Russia’s TMH and India’s Rail Vikas Nigam Limited (RVNL), secured critical financial backing.

The JV will now accelerate production of 120 Vande Bharat Sleeper trains, totalling 1,920 coaches, under a USD 6.5 billion contract with Indian Railways.

According to reports by ETNow, Kinet Railway Solutions will manufacture the sleeper trains at the Marathwada Rail Coach Factory in Latur in Maharashtra.

The prototype is slated for completion by June 2026, with commercial operations expected shortly after. The Latur facility is being upgraded with advanced technology to meet production demands. Further, once operational, Kinet will also handle maintenance at three depots for 35 years.

Funding & Partnerships

A recent ‘A’ credit rating from Infomerics Ratings bolstered investor confidence, enabling Kinet to secure a Rs 500 crore loan from Punjab National Bank (PNB).

The loan is backed by Russia’s Sberbank, acting as the sovereign guarantor. Additionally, Kinet awarded a Rs 450 crore contract to CG Power for engines, electrical systems, and power components.

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Strategic Importance

The Vande Bharat Sleeper trains aim to transform overnight travel with modern amenities, aligning with the government’s goal to operationalise 400 Vande Bharat trains by 2027.

The sleeper variant will cater to high-demand routes, reducing journey times and enhancing passenger safety.

Next Steps

Tenders for interior design and onboard systems will be finalised soon. With financial and technical roadblocks cleared, Kinet is now focused on meeting its 2026 prototype deadline, marking a critical milestone in India’s rail modernisation efforts.

Notably, Kinet Railway Solutions is majority-owned (70%) by Russia’s Metrovagonmash, with RVNL holding 25% and Locomotive Electronic Systems (India) owning 5%. This Indo-Russian collaboration aims to deliver cutting-edge, energy-efficient trains designed for long-distance comfort and speed.