India-Russia train deal back on track after dispute resolution (RT July 19)
Moscow
and New Delhi have resolved a dispute over a joint venture worth an
estimated $6 billion to build and maintain 120 trains for India’s
ambitious Vande Bharat Express rail service, it was reported on
Wednesday.
The joint venture to construct semi-high-speed trains involves the government-owned, publicly traded Indian company Rail Vikas Nigam Limited (RVNL)
and Metrowagonmash – part of Transmashholding, Russia’s largest rail
manufacturer. The project is back on track after contractual issues were
ironed out, Indian media have reported.
The venture was formed last year to bid for the Vande Bharat tender, with Metrowagonmash receiving a 70% stake while RVNL and a smaller Russian partner, Locomotive Electronic Systems (LES), would gain shares of 25%
and 5% respectively. The bid won the tender after offering the lowest
price of 1.2 billion rupees ($14.61 million) per train, seeing off
rivals such as Germany’s Siemens, France’s Alstom Transport, and Swiss
Stadler Rail.
However, after winning the contract, RVNL insisted on a 69% stake to replace Metrowagonmash as the majority shareholder,
citing Western sanctions on Russia and claiming it would create
“smoother movement” for the project. It also argued that it would be a
“confidence-building measure” as the project would involve importing
spare parts for Vande Bharat trains from Europe and the US. The demand
led to a breakdown in the agreement after the Russian enterprise opposed
the move.
The dispute has now reportedly been resolved “at the
highest level” between the two governments, leading to Metrowagonmash
retaining a majority stake. On Tuesday, RVNL informed the financial
markets that a purchase deal had been signed between its wholly-owned
subsidiary Kinet Railway Solutions Limited and Russia’s Metrowagonmash
and LES.
Anonymous
Reading the report, is Metrowagonmash still retaining its 69% stake, which means nothing has changed and RVNL demands had been unsuccessful.
ReplyDeleteIn retrospect, looking at other foreign ventures in India, it will probably be a blessing in disguise if Metrowagonmash let RVNL take the majority stake of 70%, as sooner or later Metrowagonmash will be taken to cleaners by the Indians. The Indians can just change the rules when the time comes. Even the meticulous Japanese were caught off guard by the Indians in the high speed railway project.
Like I said b4.
ReplyDeleteThe Indians lay their traps first.
When rice are cooked, they will demanded the bigger shares.
Then when Times comes all completion and up and coming, they were come up with their 48 tricks to take over.
Flimsy excuses that old contracts no more valid as change of administration.
Etc etc. Matland also have to be careful also.
Any new administration wanted their sapuloh dua will find faults to renege old contracts and them have new ones to line their pockets.
Temasek is already trapped, so no need for India to change the rules. The rice is already cooked as Virgo said above. Keep pouring money into the black hole or else....meaning Temasek may lose everything in India.
ReplyDeleteRight, Matland is not really safe either. What if Anwar fails to win next election? Things could change dramatically. Red Dot already found out against Mahathir many a time. Fortunately the cutting of water supply does not work or else the same thing will be used to hold Red Dot hostage.
Mad Hatter is hardcore dead set anti-Red Dotter. They said that even if he dies, his mouth would never die. Now using PAS and PN for leverage against PH and UMNO, using the same race and religion card. His formation of a purely Malay party to compete in the 2022 election was a complete washout, with not even one candidate being elected. In fact all of them lost their deposits, including Mad Hatter and his son. Really shameful and yet had the thick skin to return again when he was totally rejected.