The estimated cost of India's first bullet train project, connecting Mumbai and Ahmedabad, is set to almost double from its original projection. The new figure is approximately Rs 1.98 lakh crore, as revealed by senior railway officials.
Revised Estimates and Government Approval
Satish Kumar, the Chairman and CEO of the Railway Board, disclosed the revised cost during a briefing on Friday. The briefing marked the 50th meeting of the PRAGATI (Pro-Active Governance and Timely Implementation) framework. Kumar clarified that while the final sanction for the second revised estimate is still pending, the projected cost is around Rs 1.98 lakh crore.
He stated that the amount is under revision and awaits final approval from the Union Cabinet, which is expected shortly, within a month or two. This confirmation came in response to queries about a potential cost overrun for the flagship infrastructure project.
Funding and Reasons for the Cost Escalation
The National High Speed Rail Corporation Limited (NHSRCL) project was initially estimated to cost about Rs 1.08 lakh crore. A significant portion of this, around Rs 88,000 crore, was to be financed through a low-cost loan from the Japan International Cooperation Agency (JICA).
Reports indicate that JICA will not provide additional funds to cover the increased cost. Consequently, the Indian government will bear the entire burden of the cost overrun. The project has faced significant delays, primarily due to land acquisition challenges and disruptions caused by the coronavirus pandemic. Originally slated to be operational in 2022, the full completion is now expected by the end of 2029.
Phased Launch and Project Timeline
Despite the delays and cost revision, there is clarity on the operational timeline. Railway Minister Ashwini Vaishnaw announced that the first bullet train will run on August 15, 2027. This inaugural service will operate on the Surat to Bilimora stretch.
The entire 508-kilometer corridor will be opened in a phased manner:
- Phase 1: Surat-Bilimora section (Opening August 15, 2027)
- Subsequent phases will include Vapi-Surat and Vapi-Ahmedabad sections
- The final phase will connect Thane to Ahmedabad, making the entire Mumbai-Ahmedabad corridor operational
The high-speed rail line will feature 12 stations: Mumbai, Thane, Virar, Boisar, Vapi, Billimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad, and Sabarmati. The NHSRCL, incorporated in 2016, is the special purpose vehicle responsible for financing, constructing, maintaining, and managing this transformative rail corridor.
