Bangladesh Railway is set to purchase 200 broad gauge carriages from India for Tk1,205.54 crore (excluding customs duties).

The agreement was signed between Bangladesh Railway and RITES Limited, India, under the project “Procurement of 200 Broad Gauge Passenger Carriages for Bangladesh Railway” at Rail Bhaban on Monday.

The project, funded by the Government of Bangladesh and the European Investment Bank (EIB), aims to improve the railway system in the country. The carriages are scheduled to be delivered within two years and will feature stainless steel bodies, high-speed bogies, roof-mounted air conditioning systems (RMPU), and automatic air brake systems.

The project duration is from July 2022 to June 2026.

Project Director (PD) Md Zaidul Islam explained the delay in the agreement, stating, “It took some time to arrange the project’s PD appointment and other tasks.”

At the contract signing ceremony, Railways Minister Md Zillul Hakim emphasised the urgent need for new coaches. “We have a shortage of carriages. We need them very soon. It will be beneficial if we can receive some coaches within the next two months. A detailed schedule of coach delivery should be included in the contract so that we can plan accordingly.”

The project’s objective is to provide modern, safe, and comfortable services to passengers by increasing the availability of carriages, operating railways on new routes to meet rising passenger demand, replacing old and end-of-life carriages, and boosting Bangladesh Railways’ revenue.

A financing agreement between the EIB and Bangladesh was previously signed on 14 December 2018, under the Bangladesh Railway Modernisation Project for the supply of broad gauge passenger carriages. Following this financial agreement, Bangladesh Railways entered into the current agreement with RITES Limited, India, for the procurement of 200 carriages.