BEML to make India's first indigenous bullet trains; delivery by 2026

Government-owned BEML has secured the contract to build India’s first indigenously manufactured bullet trains worth ₹866.87 crore. Awarded by Indian Railways' Integral Coach Factory (ICF) in Chennai, the contract involves manufacturing of two high-speed trainsets, each comprising eight coaches. BEML stated that each coach will be priced at ₹27.86 crore, in an exchange filing on Tuesday.

“The train sets will be built at BEML's Bengaluru rail coach complex and are scheduled for delivery by the end of 2026. Featuring a fully air-conditioned, chair car configuration, the trains will offer modern passenger amenities such as reclining and rotatable seats, special provisions for passengers with restricted mobility, and onboard infotainment systems,” the company said in its exchange filing.

BEML stated that the project marks a significant milestone in India's high-speed rail journey, featuring the first indigenously designed and manufactured trainsets. Currently, the fastest train in India, the Vande Bharat Express, has a maximum speed of 180 km/h (112 mph), though the train typically operates at 160 km/h (99 mph) for safety and operational reasons.

These trains are expected to be part of the 508-km-long Mumbai-Ahmedabad bullet train corridor, a project estimated to cost ₹1.1 lakh crore.

Initially, the corridor was expected to feature Japan’s Shinkansen E5 trains, which can reach up to 350 km/h. In September last year, Japan also confirmed the plans to develop the Shinkansen E5 series for this route under the G7 Partnership for Global Infrastructure and Investment.

However, disagreements over costs and Japan's insistence on using Japanese vendors for trains and signalling systems are said to have caused delays, prompting the Indian government to shift towards domestic manufacturing. In September, Union Railway Minister Ashwini Vaishnaw and senior officials even visited Japan to address these issues. Despite some progress such as the completion of land acquisition and 215 km of viaduct, the deadlock over rolling stock costs seems to remain unresolved.

As a result, the Integral Coach Factory (ICF), recognised for manufacturing trains for the Mumbai suburban network, issued a tender last month to produce two high-speed chair-car trains on September 5.

Further, each BEML coach is expected to cost significantly less than Japan’s proposal, which quoted over ₹46 crore per bullet train coach.

BEML, under the Ministry of Defence, operates across three key verticals: defence and aerospace, mining and construction, and rail and metro. It has advanced manufacturing facilities in Bengaluru, Kolar Gold Fields, Mysore, and Palakkad.

Share prices of the company reached an intraday high of ₹3,793, up 2% from yesterday’s close but by market close, the shares dipped slightly, ending 0.22% lower at ₹3,720 on the NSE today. Over the past 12 months, BEML shares have surged 62%, with a 32% gain year-to-date. The stock's relative strength index (RSI) stands at 66, indicating strong momentum.