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

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.
Key facts

• 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.

Month: Current Affairs - March, 2016