has not yet contributed a penny in the form of equity to the Mumbai-Ahmedabad bullet train project, now set for a review as announced by chief minister Uddhav Thackeray. But reading between the lines, one finds the rub and a tale or two.

The estimated cost of the high-speed rail project, including that of rolling stock, is almost Rs 1.1 lakh crore, of which 81% is to be funded through a loan from the Japan International Cooperation Agency (JICA) at a nominal interest rate. Of the remaining, Maharashtra and Gujarat are to contribute Rs 5,000 crore each as equity through a special purpose vehicle (SPV) and the balance Rs 10,000 crore will be equity from the Centre.

A senior official from the National High Speed Rail Corporation (NHSRC), the company formed to implement the bullet train project, said, “The equal equity share of the two states is because both will have equal say in the project. Till now, Gujarat has contributed Rs 105 crore, but Maharahstra is yet to release any funds for the project.”

He said every head of funding will go towards serving a specific purpose. For example, funding from Japan will be used for building the system—the actual construction of the route—including civil works for stations, procurement of rakes and installing operations machinery. In contrast, funding from the Centre and the two states will go towards land acquisition, relief and rehabilitation of project-affected persons and for even compensatory tree plantation.

A major hurdle for the project in Maharashtra was cleared after NHSRC floated tenders to build one of the ter minuses—Bandra-Kurla Complex. The underground terminus will be built over 4.9 hectares below a 50-hectare BKC plot earmarked for an international financial services centre (IFSC). MMRDA has valued the underground station land at Rs 350 crore. “Of the state government’s Rs 5,000 crore equity contribution, around Rs 350 crore will be adjusted in lieu of the land the state is parting with for the project,” said a state government official. “That’s why we didn’t have to release an initial investment, which for us worked out to Rs 125 crore.”

(With inputs from Bhavika Jain)