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India to Resume Train Coach Exports to Bangladesh, First Shipment Since Hasina Ouster Likely in July

India is set to resume train coach exports to Bangladesh, with the first shipment of 200 broad-gauge passenger coaches likely in July 2026. The contract, awarded to RITES in May 2024 and funded by the European Investment Bank, was delayed by political transition but is now back on track. Coaches are being manufactured at the Rail Coach Factory in Kapurthala, Punjab.

iG
iGEN Editorial
June 23, 2026
India to Resume Train Coach Exports to Bangladesh, First Shipment Since Hasina Ouster Likely in July

India will resume exports of train coaches to Bangladesh, with the first shipment of 200 broad-gauge passenger coaches likely to be dispatched in July 2026, according to the Economic Times. The contract, executed by RITES — the export arm of Indian Railways — was awarded in May 2024 through global competitive bidding and is funded by the European Investment Bank at a total cost of Rs 915 crore.

Contract and Manufacturing Details

The coaches are being manufactured at the Rail Coach Factory in Kapurthala, Punjab. RITES will not only supply the coaches but also provide design support, spare parts, and training. The contract encompasses a 36-month supply and commissioning period, followed by a 24-month warranty period.

"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 Economic Times. The project experienced delays due to the political transition in Bangladesh following the ouster of Sheikh Hasina but "is now back on track," the official added.

Historical Context

India has previously supplied Bangladesh Railways with 120 broad-gauge passenger coaches, 36 broad-gauge locomotives, and 10 metre-gauge locomotives. The new order represents a significant expansion of bilateral railway cooperation.

Project Timeline and Key Facts

Parameter Detail
Contract Type Supply of 200 broad-gauge passenger coaches
Award Date May 2024
Contract Value Rs 915 crore
Funding Agency European Investment Bank
Manufacturing Location Rail Coach Factory, Kapurthala, Punjab
Supply & Commissioning Period 36 months
Warranty Period 24 months
First Rake Readiness July 2026

Implications for Indian Railway Manufacturing

This export order underscores the capacity of Indian railway coach manufacturing to serve international markets. The Rail Coach Factory in Kapurthala is a key production hub for Indian Railways, and this order will keep its assembly lines active for at least three years. For procurement professionals and industrial executives, the project demonstrates how government-to-government railway contracts can sustain factory output and create long-term supply chain commitments.

The revival of exports to Bangladesh also signals a normalization of bilateral trade after the political disruption. With the European Investment Bank providing funding, the project meets international financial standards, which may facilitate future orders from other countries.

For plant managers at Kapurthala, the 36-month timeline requires consistent raw material supply and workforce planning. The inclusion of design support and training indicates that RITES is offering value-added services beyond mere assembly, which could become a model for future rolling stock exports.


Sources: Economic Times – Foreign Trade

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