Kinet Railway Solutions, the Indo-Russian joint venture tasked with manufacturing 1,920 semi-high-speed Vande Bharat coaches, has approached multiple banks, including Russia’s Sber Bank, for financing the first phase of its capital expenditure at the Latur facility in Maharashtra. 

Source said that the loans sought could total approximately $200 million, complementing a mix of equity and debt funding.

The initial phase of investment will focus on upgrading existing facilities at the Latur unit. A senior railway official confirmed, “Capex plans are underway, and loans are being sought to start operations.”

Kinet, formed in September 2023, is a collaboration between Rail Vikas Nigam Ltd (RVNL), a government-owned undertaking, and Russian engineering firms Metrowagonmash and Locomotive Electronic Systems (LES), with equity stakes of 25%, 70%, and 5%, respectively. The joint venture’s contract includes manufacturing and maintenance of Vande Bharat trainsets, as well as upgrading government manufacturing units and train depots.Facility Upgrades and Prototype Development

The Latur facility, handed over to Kinet by RVNL, will undergo further investments to meet production requirements. For example, the current shed, designed to handle 16 coaches, will be expanded to accommodate at least 24. Material procurement for prototype construction is also set to begin shortly, with the first prototype expected by the end of 2026.

“Mock-ups for the trainsets are ready, and meetings regarding the design are underway,” the official added. Mock-ups, often full-size models, enable designers to refine the functionality, aesthetics, and overall design of trainsets.