India’s first bullet train to cost ₹2 lakh crore; expenditure running at double the initial estimate

Bullet Train: The cost of the Ahmedabad-Mumbai bullet train project has now risen to approximately ₹2.1 lakh crore. Delays in land acquisition and other factors are cited as reasons for the cost being nearly double the initial estimate.

While one must still wait to witness the bullet train in motion, the project’s cost has certainly accelerated rapidly. The expenditure for the Ahmedabad-Mumbai bullet train is now projected to reach around ₹2.1 lakh crore, whereas the initial budget was set at approximately ₹1.1 lakh crore. This means the project is now set to cost nearly twice the original estimate. A proposal seeking approval for the increased cost of this 508-kilometer high-speed rail project has been submitted to the Cabinet.

According to the Railways, the primary reason for the cost overrun is the delay in execution. Specifically, land acquisition for the project in Maharashtra took a significant amount of time. Additionally, delays in receiving train sets from Japan and the time required for other project-related tasks contributed to the increased expenditure. Previously, in January 2026, the Railway Board Chairman had indicated that the cost would be around ₹1.98 lakh crore.

508 km long route

The Mumbai-Ahmedabad high-speed rail corridor spans 508 kilometers. Twelve stations are being constructed along this route, including Mumbai, Thane, Virar, Boisar, Vapi, Bilimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad, and Sabarmati. According to the government, the project covers areas in Gujarat, Maharashtra, and Dadra and Nagar Haveli. Updated information indicates a target to complete the entire corridor by around 2030. Meanwhile, there are plans to launch the first section in August 2027. This means travelers will have to wait a while longer for the full Mumbai-Ahmedabad bullet train service.

High-speed trains to be manufactured in India

Initial funding for this project comprises contributions from the Japan International Cooperation Agency (JICA) and budgetary allocations. A significant portion of the increased expenditure is now expected to be covered by the government budget. The Railways has also stated that the high-speed trains will be manufactured in India, with the cost per train estimated at around ₹390–400 crore. The government maintains that this project is crucial for high-speed rail technology in India, marking a major step towards promoting a high-speed rail network across the country.