Indian Railways has formed a new Special Purpose Vehicle (SPV) to implement the Mumbai-Ahmedabad High Speed Bullet Train project.
The entity has been named the National High Speed Rail Corporation (NHSRC) Limited.
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The high speed bullet rain project aims to introduce trains running at operating speeds over 320 kilometers per hour and maximum speed of 350kmph.
The bullet train project is expected to cover the 5O8 kilometers between Mumbai (Maharashtra) and Ahmedabad (Gujarat).
It will cover the journey distance in about two hours from current seven hours to cover the same distance.
Indian Railways will have 50 per cent equity in the SPV. Maharashtra and Gujarat governments are also expected to participate in the equity for the SPV.
The project will take about seven years to complete after the awarding of the contract at an estimated to cost 97,636 crore rupees.
81 per cent of the funding for this project will come by way of a loan from Japan.
It is a soft loan with maturity of 50 years at 0.1 per cent annual interest with 15 years’ moratorium period.
Current Affairs 8th March, 2016 Highlights of Union Budget 2016-17 Highlights of Railway Budget 2016
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