New Delhi: The Russia-Ukraine conflict has hampered India’s import orders to a Ukrainian manufacturer for thousands of wheelsets for Vande Bharat trains, but 128 wheels have been transported to Romania by road and will be flown by the railways for testing next month, according to sources, news agency PTI reported.
They also stated that India has placed orders for wheels with the Czech Republic, Poland, and the United States in order to reach its objective of deploying 75 semi-high speed trains on key lines across the nation by the end of this year.
India may also seek China for wheels, according to the sources.
According to the sources, Ukraine, which is one of the world’s main exporters of such wheels, has essentially halted new manufacturing, with the majority of its employees joining Russia’s war effort.
They said that as a result of this, the Railways’ intention to deploy dozens of new Vande Bharat trains this year ran into difficulties since the whole order was made to a Ukraine-based manufacturer — 36,000 wheels at a cost of $16 million — appeared to be undeliverable.
According to the sources, the payment would be paid via a Letter of Credit.
Due to the conflict, the wheels were supposed to be carried from the Ukrainian Black Sea Port to Maharashtra’s Jawaharlal Nehru Port Trust (JNPT).
However, sources informed PTI that this hasn’t slowed down trials in India, which are set to begin next month.
“With the efforts of the Railway Ministry and the Ministry of External Affairs, 128 wheels required for the trial of two trains were sent to Romania by road on trucks from the wheel factory in Dniepropetrovsk, Ukraine,” a source was quoted by PTI in its report.
“There is no delay in the manufacturing of Vande Bharat Trains. All the required items like wheels and axles will be delivered in time.” V K Tripathi, Chairman and CEO Railway Board, informed PTI.
The Railway Wheel Factory in Bengaluru created the axles required for the wheels.
The plan to make orders with other nations, according to the sources, will significantly hike procurement costs “since demand is strong and supply is tight.”
“Also, Ukraine is the cheapest option,” a source said.
Sudhanshu Mani, the former general manager of Chennai’s Integral Coach Factory (ICF) and the brains behind the Vande Bharat trains, told PTI that the Railways’ efforts will not be jeopardised by the Russia-Ukraine conflict.
“The first rake was not going to be out before May anyway and it would still be out in June/July. Last time. the wheels were ordered from a Czech company, this time it has been ordered from Ukraine,” Mani said.
“If they get the minimum requirement of 128 wheels for the first rake, they can begin the trials and then perhaps try to further expedite deliveries from Ukraine through Romania or some other neighbouring country or as an emergency measure, even procure quickly from some other company,” Mani said.
According to the sources, although the Railways is focused on getting the Vande Bharat trains operating on time, more than 70 other trains must wait for the wheels to reach from their new destinations before hitting the tracks.
“We have a two-month window from when the trials of the two Vande Bharat trains begin and the procurement of the wheels. We should be able to get them for all the trains. It is not just India, but the problem is across the world. Ukraine is one of the largest suppliers of wheels so there is bound to be a global shortage,” a senior official told PTI.
According to reports, there is a concern about a serious wheel shortage on the worldwide market, with Ukraine accounting for 70% of the European Union’s freight railcar wheel orders.
This would result in a significant price increase for India, which, according to insiders, relies on the war-torn nation for wheels for its other luxury trains.
Railway wheels are a highly concentrated market, according to authorities, with just roughly 20 companies globally.
Finance Minister Nirmala Sitharaman declared in her 2022 Budget address that 400 Vande Bharat trains will be built in the next three years at a cost of between 40,000 crore and 50,000 crore.
(With PTI Inputs)