New Delhi: The National High Speed Rail Corporation Limited (NHSRCL) on Thursday rejected the Congress's criticism of the increased cost estimates of the Mumbai-Ahmedabad Bullet train project, saying that 'refining' of costs after finalisation of contracts is a normal practise.
Follow The PSUWatch Channel on WhatsApp
Updated project cost estimates are comparable to global benchmarks, the corporation said, responding to a post on X by the Kerala unit of the opposition party.
The initial estimate was prepared at a preliminary stage nearly a decade ago, and as is a standard practice in major infrastructure projects worldwide, costs are refined once detailed design, engineering, land acquisition and construction contracts are finalized, the NHSRCL said.
Earlier in the day, Congress Kerala claimed in a post on X by citing a media report that the cost had escalated from Rs 1.1 lakh crore to Rs 1.98 lakh crore and could eventually cross Rs 2.5 lakh crore. The project was a white elephant and the additional cost burden will fall on Indian Railways, the party added.
In reply, NHSRCL wrote that the claims were based on selective interpretation rather than verified facts, and many of the claims were factually wrong.
The agreement between India and Japan for funding the project is comprehensive, and the project continues to be backed by one of the most concessional sovereign loans ever extended for infrastructure, the corporation said.
Follow PSU Watch on LinkedIN
"It is also incorrect to state that the burden is being placed on Indian Railways. The project is implemented through the dedicated entity National High Speed Rail Corporation Limited, which has its own financing structure," it said.
High-speed rail corridors generate value through time savings and productivity gains, reduction in aviation and highway congestion, regional economic development along the corridor technology transfer and domestic manufacturing capability, the NHSRCL added.
It also assured that the Bullet train's ticket pricing will be affordable.
The foundation stone of the project was laid in 2017. The entire project will become operational by 2029, officials have said.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)