As reported by Rail Journal, the Mumbai – Ahmedabad high-speed line costs are now expected to come in far above the original plan. Reports say the budget has risen by 83%. Photo Credit: CC BY-SA 3.0/Mutimaro They also say an extra Rs 900bn ($US 9.78bn) is needed to complete the route. Much of the increase is tied to lengthy land acquisition talks. Those talks pushed land prices sharply higher before agreements were finalised. Funding pressure on the Mumbai – Ahmedabad high-speed line Japan had agreed to finance about 81% of the original Rs 1.08 trillion estimate through an Official Development Assistance (ODA) loan. Reports indicate that the total project cost has now escalated to Rs 1.98bn. Don’t miss…Alto high-speed rail project draws local backlash At the same time, disagreements in India over rolling stock and signalling contracts have added pressure around the Mumbai – Ahmedabad high-speed line. The new government in Tokyo is led by Sanae Takaichi. Japan is considered unlikely to extend another loan. The project is already delayed. Meanwhile, any extra funding would need to come from the Consolidated Fund of India. “The National High Speed Rail Corporation Limited (NHSRCL) has its own financing structure involving the government of India and the participating state governments, and it would be incorrect to say that the entire burden of the increased costs is being placed on Indian Railways,” a spokesman for the delivery agency said. Separately, sources say a note on the revised costs is expected to go to the Union Cabinet for approval shortly. Rolling stock and ETCS Level 2 signalling decisions After 53% of the original estimated cost had already been spent, the project appears to be moving through a mid-course revision. The government has expressed reluctance to procure the 320km/h E10 Shinkansen trains offered by Japan at a cost of Rs 200bn. Instead, as previously covered by Railway Supply, it has asked state-owned Bharat Earth Movers Limited (BEML) to manu
