The Japan International Cooperation Agency (JICA) submitted the report on the feasibility study of the proposed Mumbai-Ahmedabad HSR to the Indian Railways minister. The cost is estimated at Rs 988 billion.
Japan has offered a loan with an interest rate of just 0.25%, even though the cost of the project has increased from an initial estimate of Rs 650 bn (USD 10.2 billion) to Rs 988.05 billion, according to the feasibility study elaborated by JICE. The final report will to be submitted next month.
The financial rate of return is projected to 4%, with an estimated economic return of 12%, and the estimated ridership is 40,000 passengers per day.
According to JICA report the 300 kmph line should be build as a standard-gauge railway not the India’s 1676mm-gauge.
If work begins in 2017, the line can be completed in 2023 and made operational in 2024.