Japan has offered soft loan for the Mumbai-Ahmedabad bullet train project. The railway ministry is studying the conditionality of the loan which will involve transfer of technology and purchase of materials including coaches and locomotives.
“The discussions are on. Railway Minister Suresh Prabhu had last month discussed the matter with the Japanese government during his visit to Japan,” a high official told Deccan Herald.
The Japan is ready to fund 80 per cent cost of the project and wants India to purchase 30 per cent of coaches and locomotives from Japanese companies.
The railway ministry is evaluating the cost-benefit ratio of the project. According to officials, the rate of return on this Rs 98,000 crore project is estimated to be around 4 per cent. So, interest on the loan should not exceed this amount.
In July, the Japan International Cooperation Agency (JICA) submitted its final feasibility report on the project.
In its feasibility report, the JICA has estimated a high infrastructure cost and suggested a high passenger fare.
Estimates
The draft report estimated the cost of the project to the tune of Rs 98,000 crore. The earlier estimate was little over Rs 63,000 crore.
The passenger fare estimated by the JICA would be one and half times higher than that of the AC first class fare of Rajdhani.
This is almost equal to the air fare on the route.
The railway ministry wants to go ahead with the project despite the high cost of the project and a high passenger fare because the ministry expects a high traffic on the route.
The JICA has estimated that 40,000 passengers would be travelling every day .
This project will reduce the travel time on this 543 km route to two hours. The speed of the train would be 300-350 kms per hour.
In most part of its journey, the bullet train between Ahmedabad and Mumbai will run on elevated corridor. The track would be along the existing railway track.