The work on the much anticipated and much awaited Mumbai Ahmedabad High Speed Rail (MAHSR) began today. This project will be a game changer for Indian Railways in the post-independence era.
The project is being funded by Japan International Cooperative Agency (JICA). The MAHSR debt structuring deal has been very favourable for India. A loan of INR 88,000 crores at a notional interest rate of 0.1% has to be repaid over a period of 50 years and 15 years have been allowed for the principal payment moratorium.
The software ecosystem of Indian railways will get a big technological boost. Japan external trade organization (JETRO) will be assisting the Indian government in achieving localization and achieving maximum potential for its ‘Make In India’ crusade. Government will receive support from many small and mid-size organizations to complete the manufacturing schedule of HSR and also help the Government export possibilities. A multiplier effect on the employment creation in technology and manufacturing sector is expected to get triggered. Many allied industries will experience a boost in demand. Roughly 20000 jobs are expected to be generated during the construction phase and post commissioning of the project approximately 4000 jobs are expected to be generated.
By the time MAHSR is inaugurated in the year 2022, the per capita GDP of India should be around $2500 to $3,000. When China introduced High Speed Rail (HSR), its GDP stood at $3,500. Incidentally when the project will be operational, India will be celebrating its 75th year of independence.