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

Indian Railways forms SPV to execute Mumbai-Ahmedabad bullet train project
08 March 2016 Current Affairs: The bullet train is expected to cover the 508km between Mumbai and Ahmedabad in about two hours, running at a maximum speed of 350 kmph and operating speed of 320 kmph.Indian Railways have formed a new Special Purpose Vehicle (SPV) to implement the Mumbai-Ahmedabad High Speed Bullet Train project.Estimated to cost about Rs 97,636 crore, 81 per cent of the funding for the project would come by way of a loan from Japan. The project cost includes possible cost escalation, interest during construction and import duties.It is a soft loan for 50 years at 0.1 per cent annual interest with 15 years’ moratorium period, said a senior Railway Ministry official.Maharashtra and Gujarat are expected to participate in the equity for the SPV, while the Railways will have 50 per cent.Joint Committee has been formed under the Vice-Chairman of NITI Aayog with the secretaries of the Department of Industrial Policy and Promotion (DIPP), Departments of Economic Affairs and Foreign Ministry as its members along with the Railway Board Chairman.The contract for the project to be completed as a lot of new technologies would be used to construct the high-speed corridor.According to a survey, approximately 13 million passengers per annum will be availing the service once it is launched.


December 2016 Current affairs
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November 2016 Current affairs
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October 2016 Current affairs
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September 2016 Current affairs
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August 2016 Current affairs
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