Home Politics Saket Gokhale’s Claim of 50% Cost Increase in Vande Bharat Trains is Misleading

Saket Gokhale’s Claim of 50% Cost Increase in Vande Bharat Trains is Misleading

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Saket Gokhale's Vande Bharat Train Cost Claim is Inaccurate
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Trinamool Congress MP Saket Gokhale, shared a tweet where he claimed that the Modi government has increased the cost of a Vande Bharat train from ₹290 crore to ₹436 crore. The government overpays 50% to the contractors. He wrote, “Modi Govt has revised the ₹58,000 crores contract for making Vande Bharat sleeper trains A train that cost ₹290 crores earlier will now cost ₹436 crores This is a train with ONLY AC coaches that poor cannot afford. Who is benefiting from this 50% cost increase in Vande Bharat contract?”

Congress leader Surendra Rajput wrote, “I have heard that 200 Vande Bharat trains were to be built for Rs 58000 crore. Total 133 #VandeBharatExpress were made. Who pocketed the money for the remaining 67 trains Modi ji? Such a huge corruption? And you are silent and just inaugurating it?”

Handle Amina wrote, “Remember the Rafale scam? Now there’s a new one with Vande Bharat. Here’s how it works: They first award contracts to their preferred companies, then they reduce the No. of aircraft or trains needed. The dealer will provide the reduced number of aircraft or trains at the original cost (Instead of new cost). As a result, the Govt ends up covering the extra cost.(Goes to their pockets). This scam could cost at least ₹19,430 crores. It’s a blatant fraud.”

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Fact Check

In our fact-check research, we conducted a keyword search on Google and found a report by The Financial Express. According to the report, Indian Railways modified the contract for the Vande Bharat train. The contract, worth ₹58,000 crore, will see a few changes. Previously, the number of coaches in each Vande Bharat was 16, but now it will be increased to 24, while the number of trains has been reduced from 200 to 133.

Under the sleeper project, the number of trains in Vande Bharat has been reduced, but the number of coaches has been increased.
Source: The Financial Express

Further, we found a clarification tweet by the Ministry of Railways. According to the tweet, the cost of a train is determined by multiplying the cost per coach by the number of coaches. This is considered a standard formula for calculating how much each train will cost. In the sleeper project, the cost per coach is lower than all benchmarks due to transparency in the process, likely meaning that there is less waste or inflated pricing.

The tweet further mentions that to meet the high demand for travel, the project has increased the number of coaches in each train from 16 to 24, meaning the trains are now longer and capable of carrying a larger number of passengers. Despite these modifications, the total number of coaches remains nearly the same under the contract. Previously, 200 trains with 16 coaches each resulted in a total of 3,200 coaches. Now, 133 trains with 24 coaches each result in 3,192 coaches.

The Railway pointed out that this modification has reduced the total contract value by increasing the train length. The Railway wrote, “The total contract value has actually been reduced because there are economies of scale when train length is increased.”

Also, The Financial Express report states that experts believe that sleeper trains are designed for longer routes, and having more coaches per train would reduce the per-unit cost. With more passengers on the train, the cost per passenger will decrease because the total cost will be divided among a larger number of passengers.

The sleeper project was launched by Railway Minister Ashwini Vaishnaw. A total of 7 Vande Bharat sleeper trains are expected to be added to the fleet of Indian Railways. The Vande Bharat sleeper version is built for long-distance journeys ranging from 800 to 1,200 kilometers.

In conclusion, the tweet claiming that the cost of the Vande Bharat train has increased and that the number of trains has been decreased because the government overpays 50% to the contractors is misleading. It is true that the number of trains has been decreased, but the number of coaches in each train has been increased from 16 to 24, keeping the total number of coaches in the contract nearly constant, with the overall cost being reduced. These changes in the sleeper project leverage economies of scale, leading to a decrease in the per-unit cost of each journey.

ClaimThe Indian Railway has increased the cost of Vande Bharat train but has decreased the number of trains
Claimed bySaket Gokhale, Surendra Rajput and X handle Amina
Fact CheckThe number of train has been reduced, but the number of coached has been increased, keeping the total number of coaches in the contract nearly constant, with the overall cost being reduced

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