Now Reading: Bullet train cost revised to Rs 2.1 lakh crore, double original estimate
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Bullet train cost revised to Rs 2.1 lakh crore, double original estimate
Bullet train cost revised to Rs 2.1 lakh crore, double original estimate
The Ahmedabad-Mumbai bullet train project cost has been revised to around Rs 2.1 lakh crore, nearly double the original Rs 1.1 lakh crore estimate, sources said. The railway ministry placed the proposal…
The Ahmedabad-Mumbai bullet train project cost has been revised to around Rs 2.1 lakh crore, nearly double the original Rs 1.1 lakh crore estimate, sources said. The railway ministry placed the proposal for Cabinet approval on Tuesday, citing delays in land acquisition in Maharashtra and train sets from Japan as main reasons for the escalation.
Most additional funding will come from budgetary support, sources added. The project had earlier received funding from the Japan International Cooperation Agency (JICA) and government allocations. Railways said high-speed trains will be manufactured domestically at around Rs 390-400 crore each. The corridor is expected to be completed by 2030, with the first leg operational in August 2027.
In January, railway board chairperson Satish Kumar had said the cost had increased by 83% to Rs 1.98 lakh crore. The Cabinet meeting chaired by PM Modi had no official briefing on the decisions.
Indian Opinion Analysis
The bullet train is India's first high-speed rail corridor, originally estimated at Rs 1.1 lakh crore in 2015. Under the funding agreement, Japan International Cooperation Agency (JICA) provides a 50-year soft loan at 0.1% interest covering 81% of the initial cost. Land acquisition in Maharashtra remains the main bottleneck: only around 70% of the required 1,356 hectares in the state has been handed over. The project's revised cost of Rs 2.1 lakh crore would require additional budgetary allocation, shifting more of the burden onto Indian taxpayers. Railways plans to source train sets domestically under the 'Make in India' push, with each 10-car train estimated at Rs 390-400 crore. The operational deadline for the first leg, likely between Surat and Bilimora, is August 2027.
Source: timesofindia.indiatimes.com
This brief was synthesised by AI from the source linked above.
