Indian Railways to invest Rs 9,800 cr in Mumbai-Ahemadaba bullet train project

Japan Investment Co-operation Agency will provide 81% of the investment as loan at an interest rate of 0.1%

Indian Railways today announced it would invest Rs 9,800 crore in the bullet train project in the Mumbai-Ahmedabad corridor. The train will operate at a speed of 300 to 350 kmph.

A K Mittal, the chairman of Railway Board chairman, said on the sidelines of the Make In India week here that Japan Investment Co-operation Agency (JICA) would provide 81% of the investment as loan at an interest rate of 0.1%. The loan will be spread across 50 years and will have a moratorium of 15 years. This apart, 20% of the components will be sourced from Japan but it will be manufactured in India.

Mittal informed that the railway board has also identified the Bandra-Kurla complex as the location for railway station in Mumbai. “The station will be constructed three levels underground and hence will not hinder the financial centre that is being planned in the same area. In fact, a high-speed rail will improve the valuation of the land.

Initially, the Mumbai Metropolitan Region Development Authority had objected to sparing land for the bullet train station citing lack of availability of land considering the present cost.

The initial procedure and land acquisition will take about one-and-a-half years and the project development is expected to commence in early 2017. It will take another five years for completion.