Rail budget to set out funds for bullet train

Project estimated to cost about Rs 22,000-25,000cr.

The Centre is planning to earmark funds in the railway budget for India's first bullet train to ply between Mumbai and Ahmedabad. The project is estimated to cost about Rs 22,000-25,000 crore.

Rites had been given the mandate to conduct a preliminary feasibility study for the project, Railway Minister Nitish Kumar said. "We may make an initial allocation for the bullet train project in the rail budget to be announced after a new government is formed," he told Business Standard.

In its vision document, the National Democratic Alliance has identified the bullet train project as a priority if it forms the government at the Centre. Kumar also said the government might not resort to a fare increase despite an expected rise in diesel prices following the elections. "The railway finances are in a comfortable state and at this point of time we may not need to raise passenger or cargo traffic rates," the railway minister added.

Kumar said the 230 projects identified in the interim rail budget and estimated to cost Rs 20,000 crore, would be completed through budgetary support as well as market borrowing.

The railway ministry had originally proposed to create a special corridor between Delhi and Mumbai for the bullet train. Kumar said the Mumbai-Ahmedabad sector was found to be the most conducive for the corridor.

He said while a number of international agencies had shown interest in conducting the feasibility study, it was thought that they might influence the design and the technical aspects of the project. "We, therefore, decided to give the mandate to Rites and once a report has been prepared we will seek the support of external agencies," the minister said.