New Delhi: The Union government is preparing to absorb an additional Rs 90,000 crore burden on the Mumbai-Ahmedabad High-Speed Rail, deciding against seeking extra funding from the Japan International Cooperation Agency (JICA) despite a sharp rise in project costs.
The 508-km corridor, originally estimated at about Rs 1.1 lakh crore, is now projected to cost nearly Rs 1.98 lakh crore – an escalation of around 83 per cent. The increase has been attributed to delays and implementation challenges. Officials said the Railway Ministry will soon place a revised cost estimate before the Union Cabinet and seek additional budgetary support.
The ministry is expected to approach the Finance Ministry to bridge the funding gap and maintain the construction timeline. JICA currently funds nearly 81 per cent of the original cost through a concessional loan carrying 0.1 per cent interest, with a 50-year repayment period, including a 15-year moratorium. However, no fresh borrowing is being pursued under this arrangement.
For future high-speed corridors, options such as multilateral funding, special purpose vehicles and Centre-state partnerships are under consideration.
Meanwhile, BEML CMD Shantanu Roy said domestic production of two indigenous bullet trainsets has begun, adding that train speeds may eventually increase from 280 kmph to 350 kmph.
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