New Delhi: Speaking on one of Prime Minister Narendra Modi’s pet project and highly promoted Mumbai-Ahmedabad Bullet train corridor, Railway Minister Suresh Prabhu has said that the fare of the Bullet Train will be less than that of a flight.
Addressing the issue during the question hour during the monsoon session of the Parliament, the Railway Minister asserted that the project will be completed in six-years and will be cost-effective too.
Responding to a concern whether the massive funds which had been allotted for the Bullet train project could hamper those in other parts of the country, Prabhu said “there was no regional bias. Every state has got more than double than earlier.”
The Mumbai-Ahmedabad high-speed rail corridor is an approved high-speed rail corridor project of connecting the cities of Mumbai, Maharashtra and Ahmedabad, Gujarat in India. If built, it will be India’s first high-speed rail line.
The project is estimated to cost ₹97,636 crore (US$15 billion). Japan has agreed to fund 81% of the total project cost ₹79,165 crore (US$12 billion), through a 50-year loan at an interest rate of 0.1% and a moratorium on repayments up to 15 years.
The Indian Railways will invest ₹9,800 crore (US$1.5 billion) in the high-speed rail project, and the remaining cost will be borne by the state governments of Maharashtra and Gujarat. 20% of the components used on the corridor will be supplied by Japan, and manufactured in India.
In January 2016, the Ministry of Railways fast tracked the project and set up a Special Purpose Vehicle (SPV) named the National High Speed Rail Corporation Limited to build and operate the corridor.