India’s bullet train project cost set to almost double to nearly Rs 2 lakh crore

The cost of the Mumbai-Ahmedabad High-Speed Rail project has almost doubled to Rs 1.98 lakh crore, Satish Kumar, Chairman and Chief Executive Officer of the Railway Board under the Ministry of Railways, said.

“For the NHSRCL high-speed project, I just wanted to mention that while the final sanction of the second revised estimate is yet to be done, approximately it would be around Rs 1.98 lakh crore,” Kumar said in a briefing on Friday marking the 50th meeting of the Pro-Active Governance and Timely Implementation, or PRAGATI, framework.

Kumar added that the amount is still under revision and had to still be “finally approved” by the Cabinet. “(it will be approved) shortly within a month or two,” he said in response to a question on whether there was a cost over-run for the project.

The National High Speed Rail Corporation Limited (NHSRCL) bullet train project connecting Mumbai and Ahmedabad was estimated to cost around Rs 1.08 lakh crore, with the Japan International Cooperation Agency (JICA) providing low-cost financing of around Rs 88,000 crore. It has been learnt that the Indian government will bear the cost over-run, with JICA not providing additional funds.

NHSRCL is a special purpose vehicle incorporated in 2016 to finance, construct, maintain, and manage India’s high-speed rail corridor. The ambitious bullet train project, India’s first ever, has been hit by delays due to land acquisition issues and the coronavirus pandemic and was initially expected to be operational in 2022. However, full completion is now expected by the end of 2029.

On Thursday, Railway Minister Ashwini Vaishnaw said the first bullet train will run on August 15, 2027 on the Surat-Bilimora stretch. The entire project will open in a phased manner, with the Surat-Bilimora stretch followed by Vapi-Surat, Vapi–Ahmedabad, and the Thane-Ahmedabad sections. The Mumbai-Ahmedabad corridor will be operational in the final phase.

The 508 kilometre long bullet train project will have 12 stations: Mumbai, Thane, Virar, Boisar, Vapi, Billimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad, and Sabarmati.