Getting up to speed: Bullet train project to stick to deadline

NHSRCL set to invite tenders by end of this month

Allaying qualms about hurdles in land acquisition, the National High Speed Rail Corporation (NHSRCL) has said it is confident of completing the Mumbai-Ahmedabad bullet train project by 2022 on the occasion of the 75th year of India’s Independence.
 
The corporation is set to invite tenders by the end of this month even as a loan agreement is yet to be signed with the Japan International Cooperation Agency (JICA).
 
With the railways giving those who surrender their land an additional 25 per cent of its market value (over and above its price), the expected cost of the project is likely to increase from the estimated Rs 1.08 trillion.
 
The project faced public ire over land acquisition, with the Maharashtra Navnirman Sena coming out against it.
 
A similar concern was there in Gujarat with Congress Member of Parliament Ahmed Patel talking in public against the process of land acquisition. Following this, there were reports that the Japanese government too was unhappy with the progress of the project.
 
“We are confident of meeting the 2022 deadline and are set to invite tenders by the end of this month,” said Achal Khare, managing director, NHSRCL.
 
So far the two countries have signed a loan agreement for only Rs 6 billion and a JICA appraisal mission is set to visit India in July.
 
“We are in the process of submitting an environment impact assessment and social impact assessment reports because they have to be submitted to the JICA. The loan agreement for Rs 880 billion will be signed after the evaluation by the JICA appraisal mission,” Khare added.

The government is of the opinion that it is not going to affect the tendering process, which is set to start this month. Of the Rs 1.08 trillion of investment required for the project, Japan is providing Rs 880 billion as a soft loan, at an interest rate of 0.01 per cent.
 
In September, when Prime Minister Narendra Modi and his Japanese counterpart, Shinzo Abe, met for the project’s foundation, only an exchange note for the loan agreement was shared by the two countries. The loan, if cleared, will be a reimbursement of the expenditure instead of being released when the project starts.
 
While the central government holds 50 per cent in NHSRCL, 25 per cent each is owned by the state governments of Maharashtra and Gujarat.
 
Of the 508.17 km of track alignment, 155.642 km falls in Maharashtra, 350.530 km in Gujarat, and 2 km in Dadra and Nagar Haveli.
 
“Around 460 km is still open to Indian companies to bid for. However, key tenders, which include Shinkansen technology like electrical, rolling stocks, signalling and tracks, will be open for only Japanese companies,” Khare added.

Silver Bullet
· Total project cost:  Rs 1.08 trillion
· Japanese loan: Rs 880 billion at a minuscule rate of 0.01%
· Total project area: 508.17 km (Maharashtra: 155.642 km, Gujarat: 350.53 km, and Dadra and Nagar Haveli: 2)
·  No. of trains: Route will have 35 trains with 10 coaches each, which will be increased to 105 trains by 2053
 Sources: Railways, industry