Hyperloop could create 1.8 million new jobs in the Maharashtra region
The Pune-Mumbai Virgin Hyperloop One Project, if approved, would be the largest private infrastructure investment in Maharashtra supporting the Government’s trillion dollar economy goal.
As India moves to create the first hyperloop project in the world, Virgin Hyperloop One (VHO) has released new jobs figures for the entire project verified by KPMG, a strategic partner, estimating that it will create over 1.8 million direct and indirect jobs in the region through the creation of a hyperloop route.
The proposed hyperloop directly addresses all key targets of the new?Industrial Policy released in April 2019 which intends to make Maharashtra a trillion dollar economy, and the project would directly or indirectly promote nine out of 14 “thrust sectors” identified by the new policy.
According to estimates by VHO in conjunction with KPMG, the total project will attract an investment of over INR 70,000 Crore over the duration of construction. Over its lifetime, the project will create over US$36 billion in socio-economic benefits resulting in a 2.6 per cent increase in State GDP, and create new hyperloop component and manufacturing opportunities for Maharashtra to supply projects within India, and export to the rest of the world.
Employment projections for the project take into account the jobs created via construction, operation, manufacturing and research and development over the life of the project. The figures take into account direct jobs (jobs directly related to hyperloop project development activities), and indirect jobs (upstream industry sectors that support the hyperloop project).
Harj Dhaliwal, Managing Director of India and the Middle East for VHO, said: “The Pune-Mumbai Hyperloop Project is well on its way to becoming the first of its kind transit option, creating new economic opportunities for hundreds of millions of Maharashtra residents. But that’s just the beginning. We envision a future in which Maharashtra becomes a global supply hub to support hyperloop projects around the world with manufacturing, design, and engineering support services –– making it not just hyperloop’s first home, but a global leader for the first new mode of mass transportation in over 100 years.”
Following the landmark announcement in August 2019 for building the Pune-Mumbai hyperloop transportation system, the Government of Maharashtra deemed hyperloop a public infrastructure project, recognising hyperloop technology alongside other more traditional forms of mass transit and setting it up to be the first hyperloop project in the world.
The MahaIDEA Committee also earlier approved the Virgin Hyperloop One-DP World (VHO-DPW) Consortium as the Original Project Proponent (OPP) for the Pune-Mumbai Hyperloop Project. There are approximately 75 million passenger journeys between Mumbai and Pune annually – expected to skyrocket to 130 million by 2026. VHO’s system can meet this growing demand by supporting as many as 200 million passengers annually, linking central Pune and Mumbai in less than 30 minutes, as opposed to the more than three and a half hours the journey currently takes. This ultra-high-speed link not only opens up new economic and social opportunities but also offers a sustainable form of mass transportation with zero direct emissions.
The Government of Maharashtra is finalising the hyperloop infrastructure project Request For Proposal (RFP) and is expected to invite bids for the RFP under the MahaIDEA Act for infrastructure projects. The VHO-DPW proposal includes US$500 million of private equity funding for Phase 1 of the project. Phase 2 will be funded via debt and equity to be mobilised by the private sector ensuring that public money is not re-allocated from other infrastructure projects.