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New Delhi:
Amidst rising considerations of price escalation of the Mumbai-Ahmedabad bullet practice mission, the Railways on Friday stated there was no renegotiation of its phrases and circumstances with the Japanese company which is funding 81 per cent of the whole mission price.
The excessive pace rail community is estimated to price Rs 1.1 lakh crore together with the acquisition of 24 practice units, curiosity throughout building and import duties.
The Japanese International Cooperation Agency (JICA) is funding 81 per cent of the whole mission price, by means of a mortgage.
The National High Speed Rail Corporation Limited (NHSRCL), the implementing company for the mission has acquired 60 per cent land (about 77% land in Gujarat, 80% in Dadar Nagar Haveli and 22% in Maharashtra) wanted for the mission which has a deadline of December 2023.
The NHSRCL, nevertheless, has needed to cope with points starting from protests by landowners and rising price of the mission because of the widening hole between the Indian rupee and the Japanese yen resulting in main rise in prices.
In a web based media interplay, Railway Board Chairman VK Yadav agreed that there might be an increase in the price of the mission however denied that there was any renegotiation on the mortgage with JICA.
“Yes, there is cost escalation, but this is not the right time to review costs. That will be done when we finalise tenders. As in any project, we finalise the estimated cost based on historic cost. But the actual cost is known only when tenders are invited. That is the time when we come to know what the project cost is shaping up,” he stated.
Mr Yadav stated because of the COVID-19 scenario the land acquisition course of confronted some delays and that by this monetary 12 months the method might be accomplished. He stated the bodily work on the mission will start after 90 per cent of the land has been acquired.
Tenders have additionally been invited for 9 packages up to now, he added.
“I want to confirm that there is no renegotiation as far as the terms and conditions of the loan is concerned,” Mr Yadav stated.
“As far as cost escalation is concerned, in any project whatever the estimated cost may be, when the work is being executed and when work is completed there is bound to be some increase in the cost either due to cost escalation, due to inflation or due to change in design,” he stated.
Speaking at an occasion final week, Railway Minister Piyush Goyal had indicated that the monetary facet of the bold bullet practice mission between Mumbai and Ahmedabad was being reviewed because the post-Covid world will entail “a lot of tightening of the belt”.
Speaking on the India Global Week, the minister, nevertheless, stated the Railways was “committed to these projects” and “we are at the stage of finalising plans and costing” for them.
“Certainly COVID-19 has been a little bit of spanner in terms of the ambitions that we had around the bullet train project and we are relooking at all the projects in terms of the post-Covid world that will entail a lot of tightening of the belt, a lot of cost cutting and improving our efficiencies and aligning ourselves to how travel and transport will work in the after Covid world,” Goyal had stated in response to a query on the standing of the bold mission.
“I really think that it’s going to be a before-Covid and after-Covid affair,” he had stated.
Sources say talks are underway with Japan to discover if Indian firms can tackle a few of the extremely specialised engineering jobs, on the strains of “Make in India”, and to carry down the mission price.
(Except for the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)
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