₹40,000 Crore Compensation Shock? Bullet Train Project Says Rising Land Costs Slow Down India's Fasters Rail Dream

India's first bullet train project has warned that a series of enhanced land compensation orders could increase its cost by nearly ₹40,000 crore, prompting the Mumbai-Ahmedabad High-Speed Rail Project to move the Gujarat High Court against the revised awards.

The project authority has argued that such a financial burden could threaten the viability of the ₹1.1 lakh crore infrastructure project if similar compensation orders continue across Gujarat.

Project moves High Court over compensation hike

The Gujarat High Court has admitted three appeals filed by the National High Speed Rail Corporation Limited (NHSRCL) challenging enhanced land compensation awarded by the Land Acquisition, Rehabilitation and Resettlement Authority (LARRA) in cases from Surat and Bharuch districts.

A division bench of Justice Ilesh Vora and Justice R.T. Vachhani has issued notices and fixed August 5 as the next date of hearing. The court will also consider whether LARRA's compensation orders should be stayed and has directed the project authority to submit a proposal indicating the amount it is willing to deposit.

Compensation jumps nearly tenfold

The dispute centres around land acquired in Ochhan village of Bharuch district under the 2018 notification issued under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act.

While the land acquisition officer had fixed compensation at ₹50 per square metre in 2020, LARRA later enhanced it to ₹660 per square metre after an appeal by the landowner.

As a result, compensation for one parcel of land reportedly increased from around ₹85.86 lakh to nearly ₹8.46 crore.

Authority questions compensation formula

The bullet train project has argued that LARRA relied on jantri values and an earlier acquisition award from Simartha village, located nearly 14 kilometres away, instead of considering actual sale deeds of comparable land in nearby villages between 2015 and 2017.

According to the project authority, the law requires compensation to be based on the average market value of similar land in the immediate vicinity rather than unrelated acquisition awards.

More legal battles likely

During the hearing, Advocate General Kamal Trivedi informed the High Court that nearly 85 similar appeals are expected from central and south Gujarat.

He argued that if enhanced compensation, along with statutory interest, has to be paid in all such cases, the additional liability could touch nearly ₹40,000 crore.

According to the project authority, such an increase in land acquisition costs could significantly affect the future execution of India's first high-speed rail corridor.