Bullet train project: JICA provides Rs 5,500 crore loan

New Delhi: Japan International Cooperation Agency (JICA) today announced it has signed an agreement with India to provide an Official Development Assistance (ODA) loan of 89,547 million Japanese Yen (around Rs 5,500 Crore) as the first tranche for the Mumbai-Ahmedabad High-Speed Rail (MAHSR) corridor, popularly known as the bullet train project.

The project envisages development of a high-frequency mass transportation system by constructing the High-Speed Rail between Mumbai and Ahmedabad, using Japan’s Shinkansen technology, thereby enhancing mobility in India and contributing to regional economic development.

JICA Chief Representative in India Katsuo Matsumoto said the Shinkansen technology has contributed to regional wide economic and social development in Japan which brought about income generation to local residents.

“As for this MAHSR, extensive survey has been done for the environmental and social impact of the project, and the project shall be implemented adhering to JICA’s environmental and social guidelines,” he said. “India has witnessed strong economic growth in recent years, and with this growth has come a sharp rise in the volume of passengers and goods being transported in the country,” Matsumoto added.

The ODA loan agreement was signed between C S Mohapatra, Additional Secretary in the Department of Economic Affairs (DEA) at the Ministry of Finance and Matsumoto, the agency said. The project is being implemented by the National High Speed Rail Corporation (NHSRCL).

JICA had in September last year also signed an agreement with India for providing an ODA loan of 10,453 million Japanese Yen (around Rs 640 crore) to develop a training Institute at Vadodara, Gujarat, for the bullet train project. The institute, with facilities and equipment to help trainees, will be set up so that operational and safety standards and traveling experience matches the Shinkansen originals in Japan, JICA said.

The Japanese state-owned funding agency is also supporting the Western Dedicated Freight Corridor project of Indian Railways by extending ODA loan of 442,723 million Japanese Yen (Rs 27,200 crore).

Mozaffar EtezadiFar

Founder at Energykade
Mozaffar owns degrees in electrical engineering as BSc and power management as MSc. He has worked in fields of energy and e-commerce. He believes that energy and IT can help each other to save more energy and our planet. So here is energykade...
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