Mumbai – Ahmedabad high-speed line costs jump 83%

As reported by Rail Journal, the Mumbai – Ahmedabad high-speed line costs are now expected to come in far above the original plan. Reports say the budget has risen by 83%.

They also say an extra Rs 900bn ($US 9.78bn) is needed to complete the route. Much of the increase is tied to lengthy land acquisition talks. Those talks pushed land prices sharply higher before agreements were finalised.

Funding pressure on the Mumbai – Ahmedabad high-speed line

Japan had agreed to finance about 81% of the original Rs 1.08 trillion estimate through an Official Development Assistance (ODA) loan. Reports indicate that the total project cost has now escalated to Rs 1.98bn.

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At the same time, disagreements in India over rolling stock and signalling contracts have added pressure around the Mumbai – Ahmedabad high-speed line. The new government in Tokyo is led by Sanae Takaichi. Japan is considered unlikely to extend another loan. The project is already delayed. Meanwhile, any extra funding would need to come from the Consolidated Fund of India.

“The National High Speed Rail Corporation Limited (NHSRCL) has its own financing structure involving the government of India and the participating state governments, and it would be incorrect to say that the entire burden of the increased costs is being placed on Indian Railways,” a spokesman for the delivery agency said.

Separately, sources say a note on the revised costs is expected to go to the Union Cabinet for approval shortly.

Rolling stock and ETCS Level 2 signalling decisions

After 53% of the original estimated cost had already been spent, the project appears to be moving through a mid-course revision. The government has expressed reluctance to procure the 320km/h E10 Shinkansen trains offered by Japan at a cost of Rs 200bn. Instead, as previously covered by Railway Supply, it has asked state-owned Bharat Earth Movers Limited (BEML) to manufacture two prototype trains. They are designed for a top speed of 280km/h.

In addition, Japan has also offered two used E5 Shinkansen trains. India can use them for trials on the 50km Surat – Bilimora section. They are expected to arrive later this year.

Meanwhile, the signalling contract was awarded last June to a consortium of DRA and Siemens. The group will equip the line with ETCS Level 2. It will use that system rather than the coaxial leaky cable system offered by Japan.

Thane Creek tunnel boring machines remain idle

The NHSRCL has also faced problems in obtaining the 13m tunnel boring machines needed to build an underwater tunnel near Thane Creek in Maharashtra. That issue was also reported by The Economic Times. The TBMs were built by German company Herrenknecht at its facility in China. Also, they initially did not reach India. Chinese customs authorities intercepted the vessels transporting them in the South China Sea.

Still, following intervention by India’s foreign minister, S Jaishankar, the Chinese government eventually allowed the shipment to proceed. In addition, sources indicate that several critical components are missing. The TBMs remain idle at Mumbai port.

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