Friday 23 October 2015

Japan offers soft loan for bullet train project

Japan has reportedly offered to meet 80% of the Mumbai-Ahmedabad project cost, on condition that India buys 30% of equipment, including the coaches and locomotives from Japanese companies.


Train
Japan has reportedly offered financial support and technology know-how for India's maiden bullet train project.

Japan has offered to finance Mumbai-Ahmedabad high speed rail corridor estimated to cost ~INR 90,000 crore at an interest rate of less than 1%, Railway Ministry officials have been quoted as saying to a financial daily.

In its report submitted to the Railway Ministry, Japan International Cooperation Agency (JICA) has envisaged a reduction in the travel time on the 505-km long corridor between Mumbai and Ahmedabad to two hours from the existing period of over seven hours.

The bullet train is expected to run at speeds of around 300-350 km/hour.

Japan has reportedly offered to meet 80% of the Mumbai-Ahmedabad project cost, on condition that India buys 30% of equipment, including the coaches and locomotives from Japanese companies.

A decision on the project is yet to be taken by the Railways because it will be decided at the highest level in the Government, the business newspaper has reported.  

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