Russia Seeks To Expand Railway Manufacturing Investments In India

(MENAFN- KNN India) New Delhi, Nov 27 (KNN) Russian railway authorities have expressed significant interest in establishing manufacturing facilities in India to address their domestic production requirements, according to a senior railway ministry official on Tuesday.

The initiative comes as Russian railway major TMH signals its commitment to investing in the Indian manufacturing sector, reported TOI.

A top government official revealed that Russia is specifically targeting the establishment of manufacturing facilities in India to meet its substantial domestic needs.

The strategy involves sourcing critical railway components and supplies directly from Indian production lines.

Kirill Lipa, CEO, TMH, highlighted the attractiveness of India's current investment landscape during a press briefing at the company's Moscow headquarters.

"The current interest rate in India is very different from other countries," Lipa stated.

He emphasised the company's readiness to invest in developing multiple facilities capable of producing components that could potentially be supplied to the Russian market.

The engagement builds upon a historically robust relationship between Indian suppliers and Russian railway enterprises. Lipa noted existing supply contracts and expressed confidence in expanding import volumes from India.

A significant milestone in this collaboration is TMH's involvement in Kinet Railway Solutions, which has secured a substantial contract worth approximately Rs 55,000 crore with Indian Railways.

The contract involves producing 1,920 Vande Bharat sleeper coaches and providing maintenance services for 35 years.

Addressing potential concerns about international sanctions, Lipa asserted that the current geopolitical climate would not impact the Vande Bharat project.

He confirmed that the company has identified suppliers within India and other countries aligned with India-Russia relations, without relying on Russian supply chains.

This strategic partnership underscores the growing economic and industrial cooperation between India and Russia in the railway manufacturing sector, potentially opening new avenues for bilateral trade and technological exchange.

(KNN Bureau)

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