Govt will not accept Conditional Funding for High-speed Rail projects

Govt will not accept Conditional Funding for High-speed Rail projects

New Delhi: India is unwilling to accept any conditions linked to funding from China and Japan for high-speed rail projects but is keen to use expertise from these two countries which have proven capabilities in the sector.

While the BJP government is eager to pursue PM Narendra Modi’s ambitious high-speed train plan, a top government source said China and Japan have been told that India may not accept funding which is linked to sourcing of goods and technology from the donor country.

An official said the move is meant to ensure that the best technology and the cheapest cost solution is in place for the mega project.

Cooperation in building high-speed corridor will be one of the top priorities when Modi meets his counterpart during his China visit.

The railways is expected to be the most important driver of the PM’s visit as the two countries are expected to reach an agreement for expanding cooperation in construction of a high-speed rail corridor between Delhi and Chennai.

While China is keen to expand its footprint in the Indian infrastructure sector, the government is looking to leverage Chinese investment and technology to upgrade the country’s British era railway network.

Japan is also willing to invest in the proposed 543-km high-speed corridor between Mumbai and Ahmedabad, costing around Rs 90,000 crore to Rs 1 lakh crore. A detailed study is being conducted by Japan on the corridor.

China is currently conducting a feasibility study for the 1,754-km Delhi-Chennai high-speed corridor. The study is being carried out by China Railway Siyuan Survey and Design Group Co Ltd following an MoU signed with the High Speed Rail Corporation of India Ltd.

India is also cooperating with China to increase the speed of the Chennai-Bengaluru-Mysuru section to 160 kmph. A feasibility study is being carried out.

A railway official said China had shown keen interest to cooperate in the areas of high-speed trains and station modernization.

France is the other country bidding for a share of modernizing India’s rail system, the world’s fourth largest, in which India is seeking investment of around Rs 8 lakh crore over the next five years.

After coming to power, the government announced the launch of a mega diamond quadrilateral project of high-speed train network (bullet train), connecting major metros and growth centres and nine corridors identified for running semi-high-speed trains at speed of 160-200 kmph. The government needs Rs 9 lakh crore for funding the diamond quadrilateral.