Indian Railways would invest Rs 9,800 crore on the first high speed rail corridor between Mumbai and Ahmedabad.
MUMBAI, (GNI): A K Mittal, the Chairman of Railway Board said in Mumbai today that the 508 km long Mumbai-Ahmedabad High Speed Rail Corridor was one of the largest Make in India initiative, entailing an overall outlay of Rs 98,000 crores. “We will get 81% of the investment as loan from Japan Investment Co-operation Agency (JICA) at an interest rate of 0.1%. The loan will be spread across 50 years and will have a moratorium of 15 years. We will also get technology from Japan,” Mittal said, in a press briefing.
Mittal also said that this partnership between Japan and India will be a Make in India initiative in the real sense because less than 20% of the components will be sourced from Japan. Those components that will be sourced will also be manufactured in India eventually, he added.
The Railway Board Chairman said the Bandra-Kurla Complex location has been identified by the Railways after evaluating several sites including Dadar, Kurla and even Thane. He said BKC location was found most suitable and expressed confidence that the Railways would convince the Maharashtra Government about the project. “The station will be constructed three levels underground and hence will not hinder the financial centre that being planned in the same area. In fact, a high-speed rail will improve the valuation of the land”, Mr. Mittal added.
Mr. Mital said the initial procedure and land acquisition will take around one-and-a-half years and the project is expected to commence in early 2017. It will take another five years for completion.ends