How India’s bullet train project took a long detour

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In September 2017, work began on one of India’s most ambitious and technologically advanced transportation projects — a 508-km high-speed railway line between Mumbai and Ahmedabad, popularly known as the bullet train project.A joint-venture with Japan, known for its iconic 300 kmph Shinkansen trains, the project was initially estimated to be completed by 2022.Now, the first section of the Mumbai-Ahmedabad High Speed Rail (MAHSR) is expected to open by December 2027.Also Read | India’s bullet train not delayed, even Japan can’t do it in 10 yrs: High-speed rail body headOver the years, the project has run into rough waters several times — delays caused by the Covid-19 pandemic, a change in the Maharashtra government that resulted in land acquisition issues, and, most importantly, what appeared to be a degree of misalignment between the two sides.A senior industry source, who has interacted with both the Indian and Japanese delegations, said that the two sides had “a grossly insufficient understanding of each other’s objectives, business environment and way of working”, having announced the project including timelines and costs “without sufficiently detailed homework and without taking into account risks”. A view of the BKC bullet train station is seen at Bandra east in Mumbai. (Express photo by Sankhadeep Banerjee)There are many questions: Did each side clearly understand what the other side thought had been actually agreed? That seems unlikely.Did they understand or anticipate, but choose to remain silent, hoping for the best? Likely.Story continues below this adWas there chicanery on the Indian side, as was alleged by former Japanese minister Hideki Makihara in July? “I think not,” said the source. India’s Ministry of External Affairs had dismissed Makihara’s social media accusations — of “sheer recklessness” by the Indian side during negotiations and of New Delhi failing to “keep promises” — as “an individual opinion and at considerable variance with facts”.Months down the line, the two sides now seem to have largely reconciled their differences and agreed upon a pragmatic way forward.What started as a Japanese high-speed rail project is now heading towards a hybrid solution of sorts — Japanese track and civil infrastructure design, European signalling systems, India-made trains — even though it has caused consternation among some Japanese observers.For the Indian Railways, the challenge going forward is to ensure that from an engineering and operational perspective, the different systems interface with each other and work together flawlessly.Story continues below this adAlso read | India’s first bullet train project: NHSRCL completes launch of 13 heavy portal beams in AhmedabadHow we got hereTalks with Japan over the idea of a bullet train started well before 2013. But it was a feasibility study by Japanese consultants in December 2013, and a report by them in July 2015, that gave the idea concrete shape. The Union Cabinet approved the project in December 2015 and work started in September 2017.It was seen as a high-profile manifestation of India and Japan’s strategic partnership under prime ministers Shinzo Abe and Narendra Modi.But execution plans — the nitty gritty of procurement, cost estimates, statutory approval processes, construction schedules and so forth — seem to have been worked out afterwards.Story continues below this adThis was also the first time the two countries had attempted to execute a complex project together. So, it was not surprising that reality turned out to be quite different from initial assumptions.This brings us to one of the key divergences between the Indian and Japanese sides.The Japanese thought they were set to export the entire train system — track, rolling stock, signalling — since they were financing the entire project on highly concessional terms. “But India did not wish to be tied to a single, high-cost, imported solution,” said the source.“The cost effectiveness, flexibility of choice and indigenisation of technology are important to the Indians, especially for the further expansion of the high-speed rail network beyond the initial project.Story continues below this adIndians rarely buy anything without taking the proposal apart and aggressively negotiating things in line with their requirements,” said this person.“The Shinkansen, though a marvel of technology, was designed for domestic use as a comprehensive system, not for piecemeal export. The Japanese rail organisations that own it are domestic operators, not technology export houses, and they seem to have little flexibility for adaptation — technical or commercial — to the requirements of new markets,” this person added.There were also drifts and delays on both sides. Japan has had four changes of administration since prime minister Abe; in India, acquisition of land and legal right of way for much of the route was thrown into uncertainty when there was a change of government in Maharashtra after elections in 2019, and this was resolved only after the next election in 2024. By then the Japanese had decided to phase out the E5 trainset originally intended to be deployed in India.Delays are not uncommon in such projects anywhere — Japan’s Shinkansen line to Hokkaido, and the UK’s High Speed 2 rail are examples of similar projects that have seen substantive delays and cost overruns. The overall cost of the Indian project has nearly doubled to about Rs 2 lakh crore, compared to the initial estimated cost of Rs 1.08 lakh crore. The government is now likely to allocate a special budget to meet the cost surge.Story continues below this ad“Normally, prudent project execution calls for detailed planning in advance of project sanction and for major capital expenditure to be incurred only after all statutory approvals and land use rights are in place. Once you commence work and spend large amounts of capital then you can ill afford extraneous events putting these at risk,” the industry source aware of the discussions said.Also read | BEML secures Rs 5,400 crore order for Mumbai-Ahmedabad bullet train projectCurrent situationIt does seem that the two sides have come to an agreement on the way forward for the project.India has awarded the signaling contract to a European-Indian joint venture, not the Japanese Shinkansen system. The project will use Indian-built high speed trains (not as fast as the Shinkansen trains but much faster than those currently in service in India). And the two countries are likely to negotiate the supply of the Japanese E10 trainset when it becomes available in a few years’ time. The Japanese financing package will remain in place.Story continues below this adThis is quite a different scheme from the one that was originally intended. Under the circumstances, however, it is a pragmatic solution that benefits both countries. Dust and cement particles rise from the RMC plant operating for the Mumbai – Ahmedabad bullet train project at BKC in Mumbai. (Express photo by Akash Patil)According to Indian Railways officials, the government decided in 2024 to get its own bullet train and deploy an international signalling system after it became clear that Japan would not be able to provide the E10 Shinkansen trainset before 2034, as it had stopped the production of E5 trains. Officials said that both sides agreed to the decisions on rolling stock and signalling, drawing experiences from countries such as South Korea, Taiwan, China and European nations, where a similar system is being used with variations.Railway officials also said that all approvals of drawings, designs, construction schemes and quality control are carried out by Japanese experts. The Indian Bullet Train (B28), which can achieve a maximum operational speed of 250 kmph, is being developed by BEML in Bengaluru.Japanese experts also have supported India’s ambition for its own bullet train, but with some caveats. In a recent interview with The Indian Express, Masafumi Shukuri, Chairman of the Japan Transport and Tourism Research Institute (JTTRI) and International High-Speed Rail Association (IHRA), said India will have to prove that it is safe to use two different types of bullet trains (B28 and E10), and their respective signalling systems in the same corridor. He emphasised on what is called “total systems approach”, a unique aspect of the Shinkansen project where civil work, tracks, signalling, and rolling stock are built as one single system. “Eventually, I think, one of those systems will need to be adopted; you can’t have both the systems running,” said Shukuri.Japanese collaborationsStory continues below this adThere are also lessons for future collaboration. “Japanese organisations need to be willing to flexibly adapt their offerings to suit the requirements of other markets if they want their technology to be used by more countries — this is vital in order to stem the loss of Japanese industrial competitiveness as has already happened in some other industries. That requires building organizational capabilities to better understand and work effectively with other cultures,” the industry source cited above said. “In case of India, the lure of its rapidly growing economy notwithstanding, the reputation of Indian counterparties for detailed planning and adherence to agreed terms is lacking. Sometimes you may get your way in a commercial negotiation but long term reputation for trust matters a great deal too.”Incidentally, the signalling system, which is the nervous system of the rail project, has gone to a consortium led by Dineshchandra R Agrawal Infracon Pvt Ltd, Siemens Ltd and Siemens Mobility GmbH, when it bagged the contract by National High Speed Rail Corporation Ltd — the implementing agency — entailing an order valued at approximately Rs 4,100 crore. This includes Siemens Ltd’s share of Rs 1,230 crore for the design, installation, and long-term maintenance of advanced signaling and telecommunications technologies. The project is expected to be executed over a period of 54 months, with Siemens providing 15 years of maintenance services for the European Train Control System Level 2-based signaling and train control technologies, which is currently operational in over 50 countries.