Scope of the contract will include the production and maintenance of 100 aluminium Vande Bharat trains for 35 years.
The winning bidder will secure $1.57bn (Rs130bn) after the delivery of new rail vehicles, which are said to be the first of its kind trains in the country.
An additional $2.05bn (Rs170bn) will be paid over 35 years for the maintenance of these Vande Bharat trains.
With financial bids expected to be launched in the next 45 days, the technical bids are currently being assessed by the Indian Railways.
According to the tender document, the successful bidder has to present a prototype of the sleeper class Vande Bharat train within 24 months.
Expected to be manufactured at the Sonepat facility, these new vehicles are said to be lighter than traditional steel-made trains as well as energy efficient.
Last year in September, Kineco, part of Indo-Nationwide, received a contract worth $14.1m (Rs1.13bn) for interior works of Vande Bharat semi-high speed trains.
These trains are being manufactured at Integral Coach Factory (ICF) in Chennai in the Indian state of Tamil Nadu.
Furthermore, the company won an additional order for the supply of 68 train fronts for the Vande Bharat trains, according to Indo-Nationwide’s regulatory filing.