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 is likely to increase from the estimated ~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 MP Ahmed Patel talking in public against land acquisition. Following this, there were reports that the Japanese government, too, was unhappy with the progress. “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 t he two countries have signed a loan agreement for only ~6 billion and a JICA appraisal mission is set to visit India in July.

Of the ~1.08 trillion of investment required for the project, Japan is providing ~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 Centre holds 50 per cent in NHSRCL, 25 per cent each is owned by 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 firms to bid for. However, key tenders, which include Shinkansen tech like electrical, rolling stocks, signalling and tracks, will be open for Japanese firms,” Khare added.