3 days ago
State-run Rail Vikas Nigam Ltd may end pact with Turkey's Tumas
India's Rail Vikas Nigam Ltd (RVNL) may end its year-old agreement with Turkish engineering firm Tumas after their partnership failed to make progress, two people aware of the matter said. The state-run company may now look for partners from other countries to replace Tumas.
RVNL and Tumas India Pvt. Ltd had tied up in April 2024 to collaborate on infrastructure projects in India, particularly in public transport. The pact aimed at fostering partnership and cooperation in infrastructure projects, including railways, metros, and related areas.
'RVNL may put the memorandum of agreement in abeyance, and nix it completely later, as it had made no progress since being signed a year back. The company will evaluate whether such partnership itself is required now, as similar collaborations are being pursued with a few other key countries also in line with company's aggressive global expansion push," one of the two people cited above said on the condition of anonymity.
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The move comes in the wake of India's strained relations with Turkey, which supported and armed Pakistan in its recent military conflict with India. Earlier this month, the government withdrew the security clearance of Turkish firm Çelebi's Indian airport services arm citing national security risks, halting its operations at nine airports, including Delhi and Mumbai. Later, a few travel and tour operators voluntarily removed Turkey from their tour packages.
Queries emailed to the railway ministry and RVNL remained unanswered till press time.
RVNL, a Navratna PSU, is the listed infrastructure and project implementation arm of Indian Railways while Tumas is an engineering, procurement and construction company.
MoU insignificant now
According to the two people cited above, the MoU itself has become insignificant for RVNL, as it is now pursuing public-private-partnership (PPP) collaborations with leading global firms from the UAE, Europe, South Korea, and Spain for metro, EPC, and solar projects. These collaborations are expected to help RVNL to strengthen and modernize its own construction abilities for Indian Railways projects and other opportunities for construction of public transport projects within the country.
'Infrastructure is not just about concrete and steel, it is about sovereignty and national resilience too," said Shailesh Agarwal, partner, risk consulting (infrastructure), EY India. "Projects, especially in border regions or involving communication systems must be safeguarded to minimize the risk of external interference. While we welcome global expertise, it must come from nations that respect India's security and stand by us in moments of crisis," Agarwal said.
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'The recent conflict is a reminder that strategic autonomy begins with strategic choices including who we allow to build our future. Moreover, India today has the technical and engineering capability to execute these projects independently. From large-scale expressways to complex mountain tunnels, Indian firms have consistently delivered world-class infrastructure across challenging terrains. In fact, India firms are more competent when it comes to infrastructure execution. India's engineering sector has matured to meet global standards," he added.
RVNL has spread its wings in India's infrastructure sector, expanding beyond its core railway expertise into highways, metro systems, and international markets. As a Navratna PSU, it has been instrumental in executing large-scale, high-impact projects such as the Dedicated Freight Corridor, Chardham Highway, the first-of-its-kind Pamban bridge in Rameshwaram and multiple metro rail systems.
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The company is now aggressively expanding overseas, having successfully executed the UTF Harbour project in the Maldives and actively pursuing multi-billion-dollar infrastructure projects across West Asia, Africa, South America, and South Asia. It is bidding for ₹400 billion worth of projects and expanding into new infrastructure segments, including build-operate-transfer projects.
