New Delhi: India and Russia are strengthening their partnership with a new focus on the railway sector, with both nations set to sign an agreement on rail manufacturing in the near future. This collaboration will see Russian investments in India's train and component manufacturing industries, aiming to meet some of Russia's own needs. The announcement follows a recent expression of interest from Russian railway company TMH.
TMH CEO Kirill Lipa discussed the plans during an event at the company’s Moscow headquarters. He explained that India's competitive interest rates have made it an attractive investment destination for TMH. "We are interested and ready to invest in India," Lipa said. "We aim to develop facilities in India capable of producing certain components, which can also be supplied to the Russian market."
Lipa also highlighted the strong historical relationship between India and Russia, particularly in terms of supply contracts. "We have had long-standing successful partnerships with suppliers in India, and we are confident that we can further increase imports from India into Russia," he said.
TMH is the majority stakeholder in Kinet Railway Solutions, which holds a significant Rs 55,000 crore contract with Indian Railways. This contract involves producing and maintaining 1,920 Vande Bharat sleeper coaches over the next 35 years. Lipa confirmed that TMH is sourcing parts for the project from suppliers outside of Russia, including India, due to the strong relationship between the two countries.
Despite the ongoing sanctions on Russia, Lipa reassured that these measures would not affect the project. As the two nations embark on this new phase of cooperation, it is clear that their long-standing business ties remain as strong as ever.
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