The National High Speed Rail Corporation Limited (NHSRCL) on Thursday rejected allegations by the Congress over the Mumbai-Ahmedabad Bullet Train project’s rising cost and funding structure, saying the criticism was based on “conjecture and selective interpretation rather than verified facts”.
The clarification came after the Kerala unit of the Congress claimed on X that the cost of the project had risen from the original Rs 1.1 lakh crore to Rs 1.98 lakh crore, and could eventually cross Rs 2.5 lakh crore. The party described it as a “vanity project” and alleged that the additional Rs 90,000 crore burden would be borne by Indian Railways, which it said was already under financial stress.
Congress also claimed that the Japan International Cooperation Agency (JICA), whose low-interest funding was one of the project’s main attractions, would not finance the escalated cost. It further alleged that any additional borrowing would have to be raised by the Government of India at 7-8 per cent interest, instead of the earlier concessional rate of 0.25 per cent. The party also suggested ticket prices between Mumbai and Ahmedabad could rise from the earlier projected Rs 3,000 to Rs 6,000-Rs 7,000.
NHSRCL says claims are speculative
Responding point by point, NHSRCL said several of the allegations were factually incorrect. “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 said.
On revised estimates, NHSRCL said the original project cost was prepared at a preliminary stage nearly a decade ago, and that cost refinement after detailed design, engineering, land acquisition and contract finalisation was standard practice in large infrastructure projects worldwide.
“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,” it said, adding that the updated estimates were comparable to global benchmarks.
Funding structure, fares and broader gains
Rejecting the claim that the cost burden would fall on Indian Railways, NHSRCL said the project was being implemented through a dedicated entity with its own financing structure involving the Centre and participating state governments.
“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,” it said.
The corporation also said the India-Japan funding agreement remained comprehensive and that speculation over JICA support had “no base”. It added that the project continued to be backed by a highly concessional sovereign loan with very low interest and long repayment periods.
On fares, NHSRCL dismissed claims of a sharp increase. “Ticket pricing will be affordable. The speculative numbers have no basis and are meant to mislead people,” it said.
The 508-km Mumbai-Ahmedabad High Speed Rail corridor, India’s first bullet train project, was launched in 2017 and is expected to be fully operational by 2029, officials have said.