Gujarat has launched Rs 105 crore for the bullet train, but Maharashtra has not yet submerged in the kitten
He has not yet contributed a penny in the form of capital to the Mumbai-Ahmedabad bullet train project, which is now ready for review as announced by Prime Minister Uddhav Thackeray. But reading between the lines, one finds the problem and one or two stories.
The estimated cost of the high-speed rail project, including rolling stock, is almost Rs 1.1 lakh crore, of which 81% will be financed through a loan from the Japan International Cooperation Agency (JICA) at a rate of Nominal interest. Of the rest, Maharashtra and Gujarat will contribute Rs 5,000 million each as capital through a special purpose vehicle (SPV) and the balance of Rs 10,000 million will be capital of the Center.
A senior official of the National High Speed Railways Corporation (NHSRC), the company formed to implement the bullet train project, said: “Equitable participation in the two states is due to the fact that both will have the same voice in the project. So far, Gujarat has contributed Rs 105 crore, but Maharahstra has not yet released funds for the project.
He said that each head of funding will go to fulfill a specific purpose. For example, Japan's funds will be used to build the system, the actual construction of the route, including civil works for the stations, the acquisition of rakes and the installation of operating machinery. On the contrary, the financing of the Center and the two states will be used for land acquisition, relief and rehabilitation of people affected by the project and even for compensatory tree planting.
A major obstacle to the project in Maharashtra was cleared after NHSRC submitted tenders to build one of the negative terms: the Bandra-Kurla Complex. The underground term will be built on 4.9 hectares under a 50-hectare BKC plot for an international financial services center (IFSC). MMRDA has valued the land of the metro station at Rs 350 crore. Of the capital contribution of Rs 5 billion from the state government, about Rs 350 million will be adjusted instead of the land from which the state is separating for the project, said a state government official. That is why we did not have to release an initial investment, which for us worked at Rs 125 Rs.
(With contributions from Bhavika Jain)