State allocates Rs 125crore as 1st instalment for bullet train

Mumbai: Though the Shiv Sena is opposing to the Mumbai-Ahmadabad bullet train project, the state government will go ahead with it and has allocated a provision of Rs 125 crore as a first instalment against the equity in the SPV. The transport department, led by Shiv Sena leader Diwakar Raote has moved the proposal to the Cabinet 

CM Devendra Fadnavis is pushing for the project, which is the dream project of PM Narendra Modi despite of the objections raised, by Sena Chief Uddhav Thackeray and other opposition parties. Railway department has done preliminary work and tests and construction work is supposed to start in June. 

Maharashtra and Gujarat government have 25 per cent stake each and railway department has 50 per cent stake in the project. Special Purpose Vehicle (SPV) company is established for this project in Delhi. Estimated Cost of the project is Rs 1.1 lakh crore wherein both the state government will contribute Rs 5000 crore each and railways will contribute Rs 10,000 cr. Remaining funds will be raised through loans. 

So first instalment of Rs 125 crore against the state government stakes will be given to the SPV. The proposal in this regard is moved to the cabinet and funds will be released by the transport department led by Mr Raote as per requirement,  Senior officials told to The Asian Age. 

We will sign necessary agreements for future funding and loans and we will go ahead as per the cabinet decision, clarified the transport department’s officials.