New Delhi: The Ministry of Railways is considering absorbing the nearly Rs 90,000 crore cost escalation in the Ahmedabad–Mumbai Bullet Train project and is unlikely to seek additional funding from the Japan International Cooperation Agency (JICA), according to a Times of India report.

The project cost has surged from Rs 1.1 lakh crore to about Rs 1.98 lakh crore, an increase of nearly 83% mainly due to delays and related factors.

Officials told the daily that the railway ministry is preparing a revised cost estimate for the 508-km high-speed rail corridor and will soon seek Union Cabinet approval. Additional financial support is expected to be sought from the finance ministry to complete the project.

At present, JICA funds about 81% of the original project cost through an Official Development Assistance (ODA) loan at a concessional 0.1% interest rate, with a 50-year repayment period and a 15-year grace period.

Meanwhile, during a webinar on seven proposed bullet train corridors spanning over 4,000 km and estimated to cost around Rs 16 lakh crore, the Railway Board said multiple financing models are being explored, including multilateral funding, special purpose vehicles (SPVs), and Centre–state partnerships. DeshGujarat