From Rs 1 lakh crore to Rs 2 lakh crore: Mumbai-Ahmedabad bullet train cost doubles; Here’s what’s behind the massive rise

The cost of the ambitious Mumbai-Ahmedabad bullet train project has been revised to around Rs 2.1 lakh crore, nearly double its original estimate of approximately Rs 1.1 lakh crore. The proposal seeking approval for the revised cost of the 508-km high-speed rail corridor was placed before the Cabinet on Tuesday, TOI reported, citing sources.

The project has faced several delays since work began, with land acquisition, statutory clearances and delays in finalising the train sets contributing to the increase in both cost and completion timelines.

Mumbai-Ahmedabad bullet train project cost rises sharply

According to sources cited by TOI, the Railway Ministry has attributed the latest cost escalation mainly to the time taken to acquire land in Maharashtra and delays in receiving the train sets from Japan.


The original estimated cost of the 508-km Mumbai-Ahmedabad High-Speed Rail Corridor was around Rs 1.1 lakh crore. The revised estimate of around Rs 2.1 lakh crore would represent an increase of nearly Rs 1 lakh crore.

Bullet train project likely to be completed by 2030

Sources told TOI that the entire Mumbai-Ahmedabad bullet train corridor is now likely to be completed by 2030.

However, passengers could get to experience a portion of the high-speed rail network much earlier. The first leg of the corridor is scheduled to become operational in August 2027, according to the report.

The project connects Mumbai and Ahmedabad through a dedicated high-speed rail corridor and is expected to significantly reduce travel time between the two cities once fully operational.

Most additional funding may come from government support

The revised cost is also expected to change the project's funding structure. According to TOI sources, most of the additional funding required for the increased project cost is likely to come through budgetary support.

The original Rs 1.1 lakh crore funding involved financial assistance from the Japan International Cooperation Agency (JICA) along with budgetary allocation.

The latest proposal therefore marks a significant increase in the financial commitment required to complete India's first bullet train corridor.

Bullet trains to be manufactured in India

Another major development concerns the trains themselves. According to sources cited by TOI, the Railways has said that the high-speed trains will be manufactured in India.

Each train is expected to cost around Rs 390 crore to Rs 400 crore. The move towards domestic manufacturing is expected to play an important role as India builds capabilities for high-speed rail technology.

Why has the bullet train project faced delays?

The Mumbai-Ahmedabad bullet train project has experienced several challenges since it was announced.

Land acquisition, particularly in Maharashtra, took considerably longer than initially expected. The project has also faced delays related to statutory clearances and the finalisation and procurement of train sets.

These delays have pushed up project costs as construction and associated expenses have continued over a longer period.

In January, Railway Board Chairman Satish Kumar had said that the project cost had increased by around 83% to Rs 1.98 lakh crore.

No official Cabinet briefing yet

The proposal for the revised project cost was placed before the Cabinet meeting chaired by Prime Minister Narendra Modi on Tuesday, according to the TOI report.

However, there was no official briefing on the decisions taken at the Cabinet meeting at the time of the report.