'Indian bullet train costs below global benchmarks'

India's bullet train project from Mumbai to Ahmedabad is costing considerably less than initially anticipated, according to government officials. The 508-kilometer corridor, which was initially estimated to cost Rs 1.08 lakh crore in 2016, is now projected to be around Rs 2 lakh crore upon completion. A senior official revealed that the per kilometer cost of the project is approximately Rs 390 crore, which is significantly lower than Japan's Hokuriku Shinkansen, which costs over Rs 1,150 crore per km and Indonesia's Whoosh, around Rs 486 crore per km.

The cost reduction can be attributed to the decision to use domestic suppliers for the trainset and signaling systems. This decision, despite delays in land acquisition, has contributed to the lower overall cost of the project. No additional multi-lateral loans are required for the project as the incremental cost is expected to be covered internally.

India and Japan have mutually agreed to run indigenous bullet trains and deploy globally interoperable signaling systems in the corridor. The railway ministry aims to commence commercial operations for the country's first bullet train by August 2027, following the completion of civil works for the 97-kilometer Surat-Vapi high speed rail section this year.