Mumbai: Bullet train is a virtually free project, says CM Fadnavis

Chief Minister Devendra Fadnavis speaks during the 5th Progressive Maharashtra 2017 Summit, in Mumbai on Monday. Pic/PTI

Following criticism that the Mumbai-Ahmedabad Bullet Train is a sheer waste of money that wouldn't cater to all classes, Maharashtra Chief Minister Devendra Fadnavis has said it's virtually a "free" project. In an exclusive chat, Fadnavis said the bullet train wasn't just a railway project, but a path towards "unprecedented development and progress". He said the investment wouldn't cost the stakeholders anything if the project ensured long-term returns.

Fadnavis said city's much-delayed ambitious trans-harbour link (MTHL) also would be constructed on a similar financial model, one that wouldn't put any burden on the state's coffers, thanks to long-term revenue gains. MTHL tenders for three packages would be opened this week, he added.

Also read: Maha Govt gives BKC plot for proposed Mumbai-Ahemdabad bullet train

Both, the bullet train and MTHL, are being financed by the Japan International Cooperation Agency (JICA), which has offered long-term soft loans at negligible interest rates.

Long-term gains
The Mumbai-Ahmedabad would be India's first bullet train, to be built using Japan's Shinkansen technology. Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe laid the foundation stone for the project in Gujarat's Sabarmati last week.

Also read - Bullet train: High-speed travel between Ahmedabad and Mumbai by 2022

"In the bullet train project, the major share is being contributed by the Centre; Maharashtra and Gujarat would have to put in a very small share of the total investment, which would also come in the form of soft loans from Japan," said Fadnavis.

He added that though the total investment of R1.10 lakh crore for the bullet train project looked massive, the returns that all stakeholders would receive in the long run would ensure that there would be no adverse effect on their financial condition.

Also read: Bullet train services likely to start on Aug 15, 2022, says official

"For the bullet train, we will pay interest at a rate of 0.1 per cent for 50 years, while for MTHL, it's 0.5 per cent for 40 years," the CM said.

How it'll work
According to Fadnavis, the bullet train project would generate massive revenue for the state not only during the construction period, but afterwards as well.

"Where will they get the raw material and labourers from? Obviously from within India! Everything that needs to be used in the project, right from services to provisions, will have a great potential of creating revenue," he said, adding that the project-related development would further boost the economy, once operational, ensuring handsome returns that would ease loan burden and even help to make profits.

"This is how big projects worldwide work. Every person, company or agency that benefits from the project ultimately adds to the country's, and invariably the state's, revenue."

Also read: Bullet train gets past major hurdle over BKC land

MTHL, too, will create immense growth, said Fadnavis. "Once it's ready, the city will expand. Growth means more jobs, business, trade and revenue. Our critics should understand the vision and support it instead of making wild allegations and misleading the people." The JICA has committed to fund 85 per cent of the total MTHL cost of R17,843 crore. The 22-km long link is envisaged to be completed by 2021-22.

IFSC at BKC
When asked about the fate of the International Financial Services Centre (IFSC), which the state proposes to construct on the land underneath the bullet train terminus, Fadnavis said the centre would come up there and nowhere else.

"The bullet train authorities will build their terminus in such a fashion that the state will be able to construct the IFSC above it. The design will be in accordance with our plan. I think we will be able to build 12-odd floors above the terminus," he said.

Fadnavis allayed fears on Ahmedabad's GIFT City posing any threat to Mumbai's IFSC, saying the country's financial capital had international repute in financial services. "Mumbai has its own reputation, which will ensure that our IFSC gains popularity, once completed."

Sena at it again
Ahead of Fadnavis's plan of Cabinet expansion, the Shiv Sena has started its pressure tactics. Party MP Sanjay Raut, after a meeting by chief Uddhav Thackeray with senior leaders, ministers and legislators, said yesterday that it would have to rethink its association with the BJP government. It, however, is turning out to be a hollow threat as some 25 Sena legislators have opposed the idea of quitting the government, saying they aren't ready to face yet another election. But Raut insisted, "Our legislators have complained that they don't get support from the BJP government in development works. We have discussed the option of staying away from the government, leaving the final decision to our party president."

Rs 1.10 lakh-cr
Total investment in the project

Rs 17,843 crore
Total cost of MTHL

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