Media365
India is set to resume exports of railway passenger coaches to Bangladesh, with the first shipment likely to leave next month, marking the first such delivery since the political upheaval that led to the ouster of former prime minister Sheikh Hasina, The Economic Times reported on Wednesday.
A rake of up to 20 broad-gauge passenger coaches is expected to be ready for export in July under a larger contract being executed by RITES, the export arm of Indian Railways, officials told The Economic Times.
According to the report, the shipment is part of a Rs 915 crore project under which RITES will supply 200 broad-gauge passenger coaches to Bangladesh Railway. The contract, funded by the European Investment Bank (EIB), was awarded to the state-owned engineering and consultancy company in May 2024 through a global competitive bidding process, the report said.
“The first rake under this new contract will be ready in July. Preparations are underway with Bangladesh for the handover,” a senior official told the newspaper.
The coaches are being manufactured at the Rail Coach Factory in Kapurthala, Punjab.
The upcoming delivery will mark a significant step in reviving railway exports to Bangladesh after a period of uncertainty triggered by the country’s political transition. The report said the project’s implementation had slowed following the change in government in Dhaka but is now progressing according to schedule.
India has emerged as a major supplier of railway rolling stock to Bangladesh in recent years. Prior to the current contract, India supplied Bangladesh Railways with 120 broad-gauge passenger coaches, 36 broad-gauge locomotives and 10 metre-gauge locomotives as part of efforts to strengthen connectivity and transport infrastructure cooperation between the two neighbours.
Beyond the supply of coaches, the latest agreement includes design support, spare parts, training and commissioning services. The contract provides for a 36-month supply and commissioning period, followed by a 24-month warranty phase.
The resumption of deliveries is also expected to support RITES’ financial performance in the current fiscal year.
During a recent analyst call, RITES Managing Director Rahul Mithal said the company expects higher revenue generation in FY27 as deliveries under the Bangladesh contract begin.
“We expect to generate more revenue because the Bangladesh delivery will also start in this FY27,” Mithal said.
The Bangladesh order is one of several international railway projects being pursued by RITES as it seeks to expand its export footprint. The company has increasingly focused on overseas opportunities in South Asia, Africa and other emerging markets, leveraging India’s growing capabilities in railway manufacturing and engineering services.
The restart of coach exports also underscores the resilience of economic and infrastructure ties between India and Bangladesh despite political changes in Dhaka. Railway connectivity has remained a key pillar of bilateral cooperation, with both countries investing in cross-border transport links to facilitate trade, travel and regional integration.
With the first rake expected to be handed over in July, officials said the project is back on track and subsequent deliveries will be made in phases over the contract period.
