Eyeing a major share of the R33,105-crore market for supply and maintainance of high-speed trains in India, Spanish train manufacturer Talgo is setting up its office in India.
Indian Railways is planning to develop six high-speed corridors by 2020 that may open up investment opportunities for train manufacturers and maintenance service providers globally.
"We are in the process of establishing a representative office near Delhi to begin with. Depending on orders that we receive in future, we may form a subsidiary firm. The representative office will be set up in next two months, said Talgo's market development director Mario Oriol.
The company, which has supplied trains of speed up to 375 km per hour in countries like the United States, Germany, France, Russia and Italy, will primarily focus on high-speed train projects envisaged by Indian Railways in its Vision 2020 document. In addition, it is also looking for maintenance contracts from the railways as well as private firms that operate trains for captive use.
Railways wants to develop six high-speed corridors between Delhi, Mumbai, Ahmedabad, Chennai, Bangalore and Lucknow to run trains at speed of nearly 200 km per hour. Currently, it is conducting technical feasibility study for these corridors.
The high-speed corridor programme of Indian Railways opens up a huge market for us to supply trains. Although the entire market size here is 5 billion euros, we are expecting orders ranging between 100 million euros (R662 crore) and 1,000 million euros (R6,620 crore) to begin with, said Oriol.