Tata Steel has reached an agreement with Indian Railways for the production of coaches and seats for Vande Bharat Express trains.

Under the contract, the company will engage in manufacturing seats, ranging from first AC to three-tier coaches.

The company will also manufacture Linke Hofmann Busch (LHB) coaches for the indigenous-high-speeded trains.

It will be responsible for the preparation of train panels and windows, as well as railway structures related to the trains.

The seating system under bulk order will cover 22 train sets with 16 coaches each.

Currently, the Indian Railways approved a tender of about $17.6m (Rs 1.45bn) to a multinational steel entity to produce train parts under the scheme.

Tata Steel is expected to complete the train parts production in one year.

The Ministry of Railways aims to operate Vande Bharat’s first sleeper train by the first quarter of 2024.

Last week, a consortium, including Russia-based CJSC Transmashholding and Rail Vikas Nigam (TMH-RVNL), has become the lowest bidder for the $7bn (Rs580bn) contract related to Vande Bharat trains in India.

The contract will cover the manufacturing and maintenance of 200 Vande Bharat trains.