Indian Railways forms SPV to execute Mumbai to Ahmedabad bullet train project

The Indian Railways has formed a new Special Purpose Vehicle (SPV) to implement the Mumbai to Ahmedabad High Speed Bullet Train project. The entity has been named National High Speed Rail Corporation (NHSRC) Ltd.
Key facts:

• The high speed bullet train project aims to introduce the trains running at operating speeds over 320 KM per hour & maximum speed of 350 kmph.


• The bullet train project is expected to cover 5O8 KM between Mumbai & Ahmedabad. It will cover the journey distance in about 2 hours from current 7 hours to cover the same distance.


• Indian Railways will have 50 % equity in the SPV. Maharashtra & Gujarat governments are also expected to participate in the equity for the SPV.


• Project will take about 7 years to complete after awarding of the contract at an estimated to cost 97,636 crore rupees.


• 81% of the funding for this project will come by the way of a loan from Japan. It is a soft loan with the maturity of 50 years at 0.1% annual interest with 15 years’ moratorium period.

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Indian Railways forms SPV to execute Mumbai to Ahmedabad bullet train project