In September 2014, Andhra Pradesh chief minister Chandrababu Naidu announced that the state government was planning to connect Visakhapatnam and Chennai with a bullet train.
He discussed the project with visiting Chinese railways delegation and asked them to prepare a feasibility report for the introduction of a bullet train between two port cities on the East Coast, Vizag and Chennai. Without taking his Tamil Nadu counterpart into confidence Naidu announced the preparation of feasibility report.
The team of Chinese Railway Group consisted of Zhou Fang Yuan and Serge Devieux, Director, South Asia and many more officials.
During the meeting, the CM has asked them to prepare the feasibility report within two months. It has been more than 18 months, nothing is heard of the project . But, the center cleared the Ahmedabad-Mumbai high-speed rail and an implementing agency has also been set up. The cost of the project is Rs 97,636 crore, which includes construction cost Rs 44,621, rolling stock Rs 5,255 crore, land Rs 9863 crore, miscellaneous Rs 27,53 crore and interest during construction Rs 10,359 crore. Manoj Sinha, minister of state for Railways in Rajya Sabha.
The feasibility study of the project has been completed and the implementing agency National High Speed Rail Corporation Limited has been set up in February 2016.
The project will be implemented through financial and technical assistance from government of Japan. The assistance involves the provision of Japanese Yen loan for approximately 81 per cent of total project cost at 0.1 per cent annual interest rate payable in 50 years with 15 moratoriums along with transfer of technology.