Land row stalls Bullet Train project, Japan stops funding to project

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Ahmedabad: The ongoing land row has become a major road block for the ambitious Ahmedabad-Mumbai bullet train. As per sources Japan has not released second phase of funds with news on land acquisition issues doing rounds.

The protest is causing a major hurdle and Japan International Cooperation Agency (JICA) has not released latest installment. JICA is funding agency and it has stopped payments with no evident progress in resolving land acquisition controversy.

According to sources in Gujarat government, JICA’s funds for last quarter have not been disbursed.

The source, a senior state official shared on grounds of anonymity that as per the payment agreement funds will flow if work is going as per plans. With issues arising in Gujarat and Maharashtra over land, things have reached stalemate.  The first instalment of Rs 125 crore was made during Japan’s Prime Minister visit to Gujarat in September last year.

The official also added that next instalment will be made when the land acquisition issue will be resolved in India. Only when some level of progress is achieved, the funding agency will release the funds.

According to the agreement, JICA has agreed to offer approximately Rs 80,000 for the country’s High Seep Rail Network. The projected cost of the entire project comes to around 1 lakh crore.

The funding agency will be giving the amount in installments in the form of soft loans for 15 years. JICA will release the funds in the form of installments.

Maharashtra and Gujarat government will jointly pay Rs. 20,000 crore and that too in installments. The special purpose vehicle (SPV) for the project was formed with the equity of Rs. 500 crore in previous September only.

Gujarat Dr JN Singh who coordinates with various agencies on behalf of Gujarat government has said that the government is hardly aware about cash flow issue. Singh also added JICA funding is not part of their preview and that funding will come as with each level of project implementation.

Gujarat government on the other hand is working hard to work out amicable solution with farmers. Kaushik Patel, revenue minister also shares the Chief Minister Vijay Rupani has asked that farmers should not be face injustice during the land acquisition process.

13th International Railway Equipment Exhibition (IREE) 2019

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