Indian Railways have formed a new Special Purpose Vehicle (SPV) to implement the Mumbai-Ahmedabad High Speed Bullet Train project. The entity has been named the National High Speed Rail Corporation Limited.The bullet train is expected to cover the 508km between Mumbai and Ahmedabad in about two hours, running at a maximum speed of 350kmph and operating speed of 320kmph.Currently, Duronto takes about seven hours to cover the distance between the two financial centres of the country.
Key Facts about the Project
- Estimated to cost about Rs 97,636 crore, 81% of the funding for the project would come by way of a loan from Japan. The project cost includes possible cost escalation, interest during construction and import duties.
- It is a soft loan for 50 years at 0.1 per cent annual interest with 15 years' moratorium period.
- Maharashtra and Gujarat are expected to participate in the equity for the SPV, while the Railways will have 50 per cent. The balance would be contributed by the state governments of Maharashtra and Gujarat.
The Diamond Quadrilateral is a project of the Indian railways to establish high speed rail network in India. This quadrilateral will connect the four metro cities in India, i.e. Delhi,
Mumbai, Chennai and Kolkata. This project is similar to Golden Quadrilateral which is a roadway project which connects the four metros by Express Ways.
- For timely completion of the project, a Joint Committee has been formed under the Vice-Chairman of NITI Aayog with the secretaries of the Department of Industrial Policy and Promotion (DIPP), Departments of Economic Affairs and Foreign Ministry as its members along with the Railway Board Chairman.
- According to a survey, approximately 13 million passengers per annum will be availing the service once it is launched.