According to local media reports, authorities responsible for the Mumbai – Ahmedabad high-speed rail (HSR) line have informed the Japanese parties involved that the land acquisition issues for the project have been resolved. With that, tendering processes for the electrical and signalling equipment as well as the rolling stock can now be launched. Previously, the cost of many essential items to be supplied by Japanese companies had increased by up to 90% compared to the project consultants’ estimates. According to sources, the Japanese and Indian sides have agreed to set a limit on the cost of the systems and rolling stock. If the prices quoted by Japanese companies for these items exceed that limit, the Japanese side will be responsible for paying the difference outside the parameters of the loan agreement for the project. The Japan International Cooperation Agency (JICA) is covering 80% of the cost of the HSR project with a soft loan, under the condition that all essential components will be purchased from Japanese suppliers.
