NHSRCL refutes Congress' claims of the Mumbai-Ahmedabad Bullet Train cost escalation and funding crises

New Delhi [India], March 5 (ANI): The National High-Speed Rail Corporation Limited (NHSRCL) has officially rejected claims regarding the financial status of the Mumbai-Ahmedabad Bullet Train project, stating, "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 corporation clarified that "updated project cost estimates are comparable to global benchmarks" and explained that "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."

This point-by-point clarification was issued by the NHSRCL in response to a critical social media post by the Kerala unit of the Congress party. The opposition party had earlier posted on X, "As we exposed nearly two years ago, Modi's vanity project, the Mumbai-Ahmedabad Bullet Train, has seen its cost escalate from the original Rs 1.1 lakh crore to Rs 1.98 lakh crore. This is when the project is half complete. The final cost could be more than 2.5 lakh Cr."

Regarding the funding of this increase, the Kerala Congress said, "The additional Rs 90,000 crore burden will now be borne by Indian Railways, which is already struggling for funds. The Japanese agency JICA is not going to fund this escalation."

In its response, the NHSRCL countered this by saying, "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, which has its own financing structure."

The opposition further alleged a shift in debt interest rates, stating, "The main attraction of JICA funding was the ultra-low 0.25% interest rate. But this extra Rs 90,000 crore will now be raised as debt by the Government of India at 7-8% interest. It will take more than a century to recover the cost." Addressing the financial agreements, the NHSRCL noted, "The agreement between India and Japan for funding the project is comprehensive, and the speculations made have no base." The corporation added that 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."

Finally, the Kerala Congress raised concerns about the impact on the public, writing, "The original projected ticket price between Mumbai and Ahmedabad was around ₹3,000. With costs nearly doubling while the project is only half complete, ticket prices could well touch Rs 6,000-Rs 7,000." The NHSRCL dismissed these figures, stating, "Ticket pricing will be affordable. The speculative numbers have no basis and are meant to mislead people."

The agency concluded by emphasising that high-speed rail generates value through "time savings and productivity gains" and "regional economic development along the corridor." (ANI)

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