BEML Share Price Gains After Rs 867-Crore Bullet Train Order

BEML Ltd.'s share price gained on Wednesday after it bagged the deal to make India's first set of bullet trains from a local government vendor.

The state-owned company received a contract for the design, manufacturing, and commissioning of two high-speed trainsets from Integral Coach Factory, Chennai, to be deployed on the ambitious Mumbai-Ahmedabad bullet train corridor.

The two high-speed trains will comprise eight cars priced at Rs 28 crore each. The total deal value of Rs 867 crore includes design cost, one-time development cost, non-recurring charges, one-time cost towards Jigs, fixtures, tooling, and testing facilities, which will be utilised for all future high-speed projects in India, according to an exchange filing.

The trainsets will be built at BEML's Bengaluru rail coach complex and are scheduled for delivery by the end of 2026.

The trains, designed with a fully air-conditioned chair car configuration, will provide modern passenger amenities, including reclining and rotatable seats, special accommodations for passengers with limited mobility, and onboard infotainment systems, BEML said.

These trains will be part of the ambitious 508-km Mumbai-Ahmedabad bullet train corridor, estimated to cost Rs 1.1 lakh crore.

Initially, the corridor was reportedly planned to feature Japanese Shinkansen E5 trains, capable of reaching up to 350 km per hour. However, due to the high prices quoted by Japanese firms, the Indian government opted to manufacture these high-speed trains domestically.

BEML operates in three verticals: defence and aerospace, mining and construction, and rail and metro, and has state-of-the-art manufacturing facilities located at Bengaluru, Kolar Gold Fields, Mysore, and Palakkad, along with R&D infrastructure and a nationwide network of sales and services.