New Delhi

Hindustan Times reports that Japan has offered to fund Rs 988,050 million proposed high speed rail corridor connecting Mumbai to Ahmedabad at a low interest rate of 0.25% at Tuesday’s meeting of the Indo-Japan Joint Monitoring Committee (JMC) with condition that 30% of the rolling stock for the project would be sourced from Japanese firms. A financial rate of return (RoR) of 4% and an economic RoR of 12% has been projected. JICA has indicated a substantial cost escalation by factoring in components including price escalation during construction (estimated at Rs 172,212 million ) and interest during construction (estimated at Rs 115,709 million). Basic capital cost has been projected at Rs 700,129 million in the draft JICA report. If work begins in 2017, the line can be completed in 2023 and made operational in 2024.

Also read: Ahmedabad-Mumbai High Speed Rail:Draft report submitted by JICA.Final report likely next month