There is a bidding process involved price per loco by some estimates can be 50-70 lacs. Generally in such large tenders L1/L2/L3 all get some portion of tender and L2/L3 are asked to meet L1 pricing. Not sure about developmental vendors but Railways do tend to give a small portion of tenders to developmental vendors as well to help them grow. Some of the Indian vendors who have been working on Kavach for past 2/3 years and have shown some capabilities during trials might get small portions but the newly registered developmental vendors I have my doubts.
As far as Siemens and other international vendors are considered their TCAS pricing was 3x to 4x higher when compared with Indian vendors I am not sure how they can bring it down.
Also do understand I too have limited understanding of how it works but I have just put down based on how I have seen other large Rly tenders.
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