Bullet Train Project: Railways unlikely to seek extra loan from JICA to meet higher cost of Bullet train project – The Times of India

NEW DELHI: The railways is bearing the practically Rs 90,000 crore extra (83% escalation) cost for the Ahmedabad-Mumbai Bullet train project and gained’t seek additional loan from Japan Worldwide Cooperation Company (JICA). The project cost has elevated from Rs 1.1 lakh crore to Rs 1.98 lakh crore as a result of of delays and different causes.The railway ministry is probably going to give you the revised cost estimate for the 508-km excessive-pace rail hall and can seek Cupboard’s approval for funding to make sure the project’s completion. Individuals conscious of the plan mentioned that the ministry would seek extra funding from the finance ministry.JICA is offering roughly 81% of the unique estimated cost by means of an Official Growth Help (ODA) loan at a extremely concessional rate of interest of 0.1% each year. The reimbursement interval is 50 years, with a 15-yr grace interval.In the meantime, at a webinar on the just lately introduced seven Bullet Train corridors which is able to cowl over 4,000 km and require an estimated funding of Rs 16 lakh crore, Railway Board mentioned that it’s completely different funding choices, together with financing by way of multilateral help, Particular Objective Autos (SPVs) and Centre-state partnership. Railway Board chairman Satish Kumar mentioned that they’re intensive growth alongside the brand new corridors, often called Transit Oriented Growth (TOD), for viability, which consultants mentioned can be utilized to increase non-fare income for the initiatives.Talking on the publish-price range webinar, BEML CMD Shantanu Roy mentioned that India wants to be self-reliant in making Bullet trains and a starting has been made by the PSU to manufacture the primary two. He added that sooner or later, the pace of these indigenous trains will be elevated from 280 kmph to 350 kmph.Railway officers and consultants mentioned that standardisation of the complete system from development to signalling and train manufacturing is being checked out for all future Bullet Train initiatives so that there’s financial system of scale.