In early 2018, The Indian Railways invited bids for the manufacture of 291 coaches for 15 trainsets. As per the bid conditions, the first trainset consisting of 20 coaches will be transferred to ICF, which will be developed as a prototype. The other trainsets will be assembled at ICF, based on the components supplied by the successful bidder. In the bidding process,
Stadler-Medha consortium emerged as the sole bidder. In August 2018, the
Department for Promotion of Industry and Internal Trade of the
Government of India red-flagged the initial tender, stating that it was not in line with the '
Make in India' project. In April 2022, a new tender was floated for the manufacture 200 sleeper trainsets with
stainless steel coaches. In March 2023, the contract for the production of the 120 trainsets was awarded to Kinet Railway Systems, a consortium of
Rail Vikas Nigam and
Transmashholding, which emerged as the lowest bidder with per trainset. As per the bid, the consortium would manufacture the trainsets in the Indian Railways facility at
Latur and would maintain the sets for 35 years. A month later, the consortium of
Bharat Heavy Electricals Limited-
Titagarh Rail Systems (TRSL), who was the second lowest bidder, was awarded the contract for the manufacture of the remaining 80 trainsets at the same price as the lowest bid, with the commercial production of these trainsets set to begin in June 2025 at the TRSL plant in West Bengal. In May 2023,
Alstom was awarded a contract for the manufacturing and maintenance of 100 aluminium body trainsets, at a cost of per trainset. However, the Alstom contract was later cancelled after Indian Railways sought to reduce the per unit cost of the trainset to . In 2023, ICF–
BEML were designated to manufacture the first ten Vande Bharat sleeper trainsets. The propulsion was to be supplied by the ICF, with the assembly of the train carried out at the BEML facility in
Bengaluru. In September 2024, the first prototype of the Vande Bharat sleeper trainset, was rolled out, with commercial services planned to start in 2025. In December 2025, the prototype reached speeds of during the trial runs conducted under the supervision of the
Commission of Railway Safety. On 17 January 2026, the first
Vande Bharat Sleeper Express was inaugurated by
prime minister Narendra Modi. The third and fourth sets are planned to be rolled out by March 2026, with a planned delivery rate of one rake per month for the final six units, to be completed by August 2026. According to the ICF, it is also involved in the process of designing a trainset consisting of 24 coaches including a
pantry car, the production of which would be taken up after the delivery of the initial order of ten trainsets. == Design and engineering ==