India’s next phase of high-speed rail mobility, Kinet Railway Solutions — a joint venture between Russia’s TMH Group and state-run Rail Vikas Nigam Limited (RVNL) — has received an ‘A’ long-term credit rating from Infomerics Ratings.
The rating signals financial stability and project viability as the company prepares to spearhead the production of Vande Bharat Sleeper trains from its manufacturing facility in Latur, Maharashtra. Valued at nearly USD 6.5 billion, the contract awarded to Kinet Railway Solutions involves the production of 120 advanced Vande Bharat Sleeper trainsets, totalling 1,920 coaches. This next-generation fleet will extend the scope of the Indian Railways’ semi-high-speed offering into the long-haul, overnight travel segment — a strategic expansion aimed at enhancing both comfort and operational efficiency on key intercity corridors.
The manufacturing will take place at the Marathwada Rail Coach Factory, a purpose-built industrial hub in Latur, which has been upgraded with advanced machinery, digital production tools, and precision quality systems in preparation for this landmark assignment. Kinet expects the first prototype to be ready by June 2026, with commercial rollout likely to begin in FY27. Once operational, the company will also be responsible for maintaining the trainsets across three strategically located depots for a 35-year period. The strong credit rating, classified as IVR A/Stable, underscores the project’s institutional backing, financial security, and its importance within India’s broader infrastructure roadmap. For a sector increasingly driven by public-private partnerships, Kinet’s rating is not only a credit endorsement but a green light for stakeholders across the rail ecosystem — from OEM suppliers to energy and technology partners.
More significantly, the project dovetails with India’s climate goals and net-zero carbon ambitions. By designing sleeper trains that are both energy-efficient and equipped with modern amenities, the Vande Bharat Sleeper range promises a viable, low-emission alternative to both short-haul air travel and fuel-intensive road transport. It also resonates with the government’s focus on building gender-neutral, accessible, and equitable transit solutions, as newer coaches are expected to incorporate inclusive design principles and digital connectivity. Speaking on the development, a Kinet spokesperson described the rating as “a recognition of our bold vision and long-term commitment to India’s rail modernisation”. The company reiterated that its aim is not merely to deliver coaches but to reshape the experience of overnight travel for millions of passengers through technological innovation and precision-led engineering.
With the Indian Railways targeting rapid electrification, station redevelopment, and increased private sector participation, the successful execution of the Vande Bharat Sleeper project could serve as a transformative model. It also solidifies Maharashtra’s position as a nucleus for high-value railway manufacturing, job creation, and smart mobility innovation. As India transitions from conventional rolling stock to next-gen electric trains, projects like this are essential — not only for reducing dependence on fossil fuels but also for catalysing a homegrown railway ecosystem that can compete globally.
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