Mumbai: Bullet train is a virtually free project, says CM Fadnavis

Chief Minister Devendra Fadnavis speaks during the 5th Progressive Maharashtra 2017 Summit in Mumbai on Monday PicPTIFollowing criticism that the MumbaiAhmedabad Bullet Train is a sheer waste of money that wouldnt cater to all classes Maharashtra Chief Minister Devendra Fadnavis has said its virtually a free project In an exclusive chat Fadnavis said the bullet train wasnt just a railway project but a path towards unprecedented development and progress He said the investment wouldnt cost the stakeholders anything if the project ensured longterm returnsFadnavis said citys muchdelayed ambitious transharbour link MTHL also would be constructed on a similar financial model one that wouldnt put any burden on the states coffers thanks to longterm revenue gains MTHL tenders for three packages would be opened this week he addedAlso read Maha Govt gives BKC plot for proposed MumbaiAhemdabad bullet trainBoth the bullet train and MTHL are being financed by the Japan International Cooperation Agency JICA which has offered longterm soft loans at negligible interest ratesLongterm gainsThe MumbaiAhmedabad would be Indias first bullet train to be built using Japans Shinkansen technology Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe laid the foundation stone for the project in Gujarats Sabarmati last weekAlso read Bullet train Highspeed travel between Ahmedabad and Mumbai by 2022In the bullet train project the major share is being contributed by the Centre Maharashtra and Gujarat would have to put in a very small share of the total investment which would also come in the form of soft loans from Japan said FadnavisHe added that though the total investment of R110 lakh crore for the bullet train project looked massive the returns that all stakeholders would receive in the long run would ensure that there would be no adverse effect on their financial conditionAlso read Bullet train services likely to start on Aug 15 2022 says officialFor the bullet train we will pay interest at a rate of 01 per cent for 50 years while for MTHL its 05 per cent for 40 years the CM saidHow itll workAccording to Fadnavis the bullet train project would generate massive revenue for the state not only during the construction period but afterwards as wellWhere will they get the raw material and labourers from Obviously from within India Everything that needs to be used in the project right from services to provisions will have a great potential of creating revenue he said adding that the projectrelated development would further boost the economy once operational ensuring handsome returns that would ease loan burden and even help to make profitsThis is how big projects worldwide work Every person company or agency that benefits from the project ultimately adds to the countrys and invariably the states revenueAlso read Bullet train gets past major hurdle over BKC landMTHL too will create immense growth said Fadnavis Once its ready the city will expand Growth means more jobs business trade and revenue Our critics should understand the vision and support it instead of making wild allegations and misleading the people The JICA has committed to fund 85 per cent of the total MTHL cost of R17843 crore The 22km long link is envisaged to be completed by 202122IFSC at BKCWhen asked about the fate of the International Financial Services Centre IFSC which the state proposes to construct on the land underneath the bullet train terminus Fadnavis said the centre would come up there and nowhere elseThe bullet train authorities will build their terminus in such a fashion that the state will be able to construct the IFSC above it The design will be in accordance with our plan I think we will be able to build 12odd floors above the terminus he saidFadnavis allayed fears on Ahmedabads GIFT City posing any threat to Mumbais IFSC saying the countrys financial capital had international repute in financial services Mumbai has its own reputation which will ensure that our IFSC gains popularity once completedSena at it againAhead of Fadnaviss plan of Cabinet expansion the Shiv Sena has started its pressure tactics Party MP Sanjay Raut after a meeting by chief Uddhav Thackeray with senior leaders ministers and legislators said yesterday that it would have to rethink its association with the BJP government It however is turning out to be a hollow threat as some 25 Sena legislators have opposed the idea of quitting the government saying they arent ready to face yet another election But Raut insisted Our legislators have complained that they dont get support from the BJP government in development works We have discussed the option of staying away from the government leaving the final decision to our party presidentRs 110 lakhcrTotal investment in the projectRs 17843 croreTotal cost of MTHLAlso view From a heartbroken lover to a rapist 17 drowning tragedies in Mumbai