PTI
New Delhi
The cost escalation burden for the upcoming 508-km-long Ahmedabad-Mumbai bullet train project will not be borne entirely by the Indian Railways, the National High Speed Rail Corporation Limited (NHSRCL) said on Thursday.
The NHSRCL, which is constructing the country›s first high-speed corridor, issued a clarification on X in response to a post by Congress Kerala unit, which alleged, quoting media reports, that the railways will bear an additional 90,000 crore out of the cost escalation of the project from the original Rs 1.1 lakh crore to Rs 1.98 lakh crore now.
“The commentary circulating on the Mumbai-Ahmedabad High Speed Rail Project relies largely on conjecture and selective interpretation rather than verified facts. Several of the claims made are factually wrong,” the NHSRCL said.
Justifying the current cost assessment, it said that the updated project cost estimates are comparable to global benchmarks.
“The initial estimate was prepared at a preliminary stage nearly a decade ago. As is standard practice in major infrastructure projects worldwide, costs are refined once detailed design, engineering, land acquisition and construction contracts are finalised,” the corporation said.
It added, “India has undertaken projects of similar scale in highways, metro rail and airports where revised estimates followed detailed project reports and tendering.” Responding to Congress Kerala unit›s claim that the Japanese agency, JICA, which agreed to fund 81 per cent of the original estimated cost, will not fund the escalation, the NHSRCL said.
«The agreement between India and Japan for funding the project is comprehensive, and the speculations made have no base.»
«The project continues to be backed by one of the most concessional sovereign loans ever extended for infrastructure, with extremely low interest and long repayment periods. Such financing terms are precisely why the project was structured as a bilateral partnership. Assertions to the contrary appear speculative rather than factual,» it added.
Dismissing the reports that the railway will have to fund a big chunk of the escalated amount, the corporation stated, «It is also incorrect to state that the burden is being placed on Indian Railways. The project is implemented through the dedicated entity National High Speed Rail Corporation Limited (NHSRCL), which has its own financing structure involving the Government of India and the participating state governments.»
