Government to complete Bullet Train Project | Fusion - WeRIndia

Government to complete Bullet Train Project

Government to complete Bullet Train Project

Indian government wants to complete the prestigious Mumbai-Ahmedabad bullet train project by 2022 to mark 75 years of Independence.

Despite the questioning of the Maharashtra Chief Minister Uddhav Thackery on the feasibility of the bullet train and the high costs associated with it, the central government allocated ₹5,600 crores for the ambitious project for the fiscal year 2020-21.

PM Modi wants to complete the project by 2022. As per sources in the National High-Speed Rail Corporation, a provision of ₹5,600 crores has been made for the bullet train project in this budget.

In addition to the contribution of the central government, both the state governments, i.e. Maharashtra and Gujarat will have to contribute ₹5,000 crores for the project as they own a fourth of equity in the project.

The money will be acquired in the form of extra-budgetary resources (EBR). Both states contributed together ₹1,000 crores in FY20.

A soft loan of ₹1.10 lakh crore will be obtained from the Japan International Cooperation Agency (JICA) to complete the project.

Indian Railways has a 50 per cent equity stake in the project.

Finance Minister Nirmala Sitharaman in her budget speech mentioned that the bullet train between Mumbai-Ahmedabad would be completed quickly.

Maharashtra CM Uddhav Thackery compared the bullet train to a white elephant asking who would benefit from it and how it would boost the trade and industry in the state.

He criticized PM Modi for having a dream project of the bullet train and advised him to wake up and see the reality.

Thackery said that he has to be convinced of its usefulness before making a decision. He questioned its viability.

The tribals are also opposing the project as their lands would be acquired for it.

Image Credit: Image by yuyuyaya76 from Pixabay (Free for commercial use)

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