ICF Floats Tender for Manufacturing 600 LHB Coaches for Indian Railways
Team Finance Saathi
02/May/2025
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What's covered under the Article:
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ICF floats a tender to manufacture 600 LHB coaches, including 400 general and 200 sleeper coaches, valued at Rs 1,200 crore.
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LHB coaches offer improved safety, better ride quality, and higher seating capacity with modern features like bio-toilets and panoramic windows.
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The procurement falls under the 'Make in India' initiative, with eligibility for Class-I local suppliers, and a flexible order increase option.
The Integral Coach Factory (ICF), based in Chennai, has recently floated a significant tender for the manufacture and supply of 600 Linke Hofmann Busch (LHB) coaches. This move comes as part of Indian Railways' ongoing efforts to modernize its fleet and improve the comfort and safety of long-distance travel. The tender, issued on April 29, invites bids for 400 LHB General Second Class coaches and 200 LHB Sleeper Class coaches.
The procurement plan is part of ICF's larger goal of producing 4,300 coaches this year, with 600 coaches set to be outsourced to meet the growing demand for new rail stock. The remaining coaches will be produced in-house by ICF.
ICF’s Target and Timeline
The successful bidder will be expected to deliver prototype shells and coaches within six months of receiving the Letter of Acceptance (LoA). A phased delivery plan is outlined, with an initial supply of 50 coaches per month for the first three months, followed by 75 coaches per month thereafter. The final delivery deadline for the 600 coaches is set for September 30, 2026. The total estimated cost for the entire order is around Rs 1,200 crore, or approximately Rs 2 crore per coach.
ICF's General Manager, U Subba Rao, emphasized the significance of this order in light of the target to manufacture 4,300 coaches this year. The decision to outsource the manufacture of 600 LHB coaches is aimed at ensuring timely delivery and enhancing capacity.
Purpose of the LHB Coaches
The new LHB coaches will play a key role in replacing the ageing conventional coaches that currently operate on long-distance trains. These new coaches are expected to help reduce overcrowding, ensuring that general unreserved passengers do not enter the reserved compartments. Additionally, these coaches will contribute to improving safety standards by incorporating modern features like anti-climbing mechanisms, axle-mounted disc brakes, and centre buffer couplers, which enhance crashworthiness.
Union Railway Minister Ashwini Vaishnaw recently mentioned in the Rajya Sabha that the transition from conventional ICF coaches to LHB coaches is part of a broader strategy to modernize the rail network. Since 2015, around 23,000 conventional coaches have been replaced, a figure that highlights the growing reliance on LHB coaches in the Indian railway system.
Key Features of the LHB Coaches
The LHB coaches come with a range of upgraded features aimed at improving passenger experience and safety. These include:
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Better ride quality for enhanced comfort during long journeys.
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Fibre Reinforced Plastic (FRP) interiors in AC coaches, which are more durable and require less maintenance.
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Panoramic windows that offer better views and improve the overall aesthetic of the coaches.
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Microprocessor-controlled air-conditioning systems in AC coaches for better temperature management.
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Bio-toilets to maintain hygiene and environmental standards.
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Higher seating capacity to accommodate more passengers, reducing overcrowding.
Each coach will be built to meet ICF specifications, and the manufacturer will provide a six-year warranty from the date of dispatch. Inspections of the coaches will be conducted by ICF or its nominated agency, ensuring that all standards are met before delivery.
Make in India Initiative and Local Suppliers
This procurement comes under the government’s ‘Make in India’ initiative, which aims to boost local manufacturing capabilities. Only Class-I local suppliers are eligible to bid for this contract as per the current government policy. This aligns with the Make in India mission and ensures that the local industry gets a significant boost from government contracts like this.
Additionally, the tender includes an option clause, allowing ICF to increase the order by up to 30 percent. This provides the flexibility to scale up procurement if needed, ensuring that Indian Railways can adjust its fleet capacity based on changing demands.
Payment Terms and Delivery
The payment structure for the tender is based on performance milestones. 90 percent of the payment will be made upon successful inspection and certification of the coaches, with the remaining 10 percent to be paid after the dispatch of the coaches. This phased payment structure ensures that the manufacturers meet their delivery and quality commitments.
Conclusion: A Step Towards Modernization
The manufacture and supply of 600 LHB coaches is a crucial step in the ongoing effort to modernize the Indian Railways fleet. With superior safety features, greater comfort, and an enhanced passenger experience, these coaches will play an integral role in improving the long-distance travel experience in India. The move also aligns with the government's goal of boosting local manufacturing under the Make in India initiative, supporting economic growth and job creation within the country.
By replacing outdated conventional coaches with state-of-the-art LHB coaches, Indian Railways is poised to offer a safer, more efficient, and more comfortable travel experience for passengers. The phased delivery plan and flexible procurement options also ensure that ICF can meet the growing demands of the railway network.
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