BEML Secures ₹867 Crore Contract for India’s First Indigenous Bullet Train

BEML Ltd, a government-run enterprise, has been awarded a significant contract worth ₹866.87 crore for the development of India’s first domestically produced bullet train. The company disclosed this information to stock exchanges, indicating that it has received the mandate to design, manufacture, and commission two high-speed train sets. This order was secured from the Integral Coach Factory (ICF) in Chennai, an Indian Railways production unit, and each train set will consist of eight coaches, with a cost of ₹27.86 crore per coach.

The Indian Railways initially relied on Japanese technology for bullet trains on the Ahmedabad-Mumbai line. However, India now has the option to utilize its domestically developed trains on this route. According to the Economic Times, discussions with Japan have not yet reached a final stage. Notably, the cost per coach as quoted by BEML is significantly lower than Japan’s estimate, which exceeded ₹46 crore per coach.

These bullet trains will offer a speed of 280 kmph, and BEML is expected to complete the order by the end of 2026. The trains will feature fully air-conditioned coaches, equipped with reclining and rotating seats, along with other modern amenities aimed at enhancing passenger comfort.

BEML’s shares began trading at ₹3720 on the BSE, with the share price climbing to an intraday high of ₹3789.95, before closing at ₹3719.60, reflecting a 0.29 percent decline. Over the past year, the company’s shares have surged by 62 percent, although shareholders who invested six months ago have seen an 8.8 percent gain. However, in the past month, the stock price declined by 5.2 percent.

The government’s stake in BEML stands at 54 percent, with the public holding 19.07 percent. BEML expressed that this contract significantly reinforces its position in the rolling stock manufacturing sector and marks a crucial step towards realizing India’s expanding rail network vision. The company plays a vital role in sectors such as defense, railways, power, mining, and construction.

On October 16, 2024, BEML’s stock saw a more than 4 percent increase, closing higher following the announcement of the bullet train contract. This marks the first instance of such a train being designed and made within the country. The trains will be manufactured at BEML’s Bengaluru rail coach complex and are scheduled for delivery by the end of 2026. These facilities will include an onboard infotainment system and several new features tailored to passenger needs.