India's ambitious first bullet train project has witnessed a massive cost escalation of approximately 83%, pushing its estimated price tag to a staggering Rs 1.98 lakh crore, according to senior railway officials. The project, already delayed by over four years, now has a revised timeline, with the initial section slated for inauguration in August 2027.
Revised Costs and New Deadlines
Responding to queries during a briefing on the government's Pragati initiative, Railway Board CEO and Chairman Satish Kumar confirmed the revised estimate. "While the final sanction for the revised cost is yet to be taken, it's around Rs 1.98 lakh crore. It's still under revision... It will be finalised within a month or two," Kumar stated. The project was initially sanctioned at a cost of about Rs 1.1 lakh crore.
The first operational leg of the 508-km Ahmedabad-Mumbai High Speed Rail Corridor will be between Surat and Bilimora in Gujarat, with an inauguration target of August 2027. The entire corridor is now expected to be completed by December 2029.
Reasons for Delay and Progress So Far
Officials cited multiple reasons for the time and cost overruns, including protracted land acquisition processes, delays in obtaining statutory clearances, and the finalisation process for the rolling stock (trains). Despite these hurdles, physical progress on the ground has reached 55.6%, with financial progress standing at 69.6% as of November 30. A sum of Rs 85,801 crore has already been expended on the project.
The project recently received high-level attention, with Prime Minister Narendra Modi directing the railway ministry to expedite its completion during a review last month. Adding to the momentum, Railway Minister Ashwini Vaishnaw virtually witnessed a significant engineering milestone on Friday.
Engineering Milestones and Green Benefits
From Rail Bhawan, Minister Vaishnaw oversaw the final breakthrough of a 1.5-km-long mountain tunnel in Maharashtra's Palghar district. "A big milestone has been achieved today. This achievement is the breakthrough of the mountain tunnel 5," he announced. This tunnel, located between the future Virar and Boisar bullet train stations, is among the longest in Palghar.
This marks the second tunnel breakthrough in Maharashtra; the first was a 5-km underground tunnel between Thane and Bandra Kurla Complex (BKC), completed in September 2025. The corridor, passing through Gujarat, Maharashtra, and Dadra and Nagar Haveli, is designed for speeds of 320 kmph. It is also being future-proofed to accommodate advanced Japanese E10 series Shinkansen trains at speeds 20 kmph higher.
Upon completion, the high-speed rail link is projected to bring substantial environmental benefits, leading to an estimated reduction of nearly 95% in carbon dioxide emissions compared to equivalent road transport.
