Bullet Train Project Moves Ahead. Pact Signed With Japanese Funding Agency For Rs 1 Lakh Crore Project Narendra Modi and Shinzo Abe shake hands in front of a shinkansen train. (JIJI PRESS/AFP/Getty Images)

Railway Ministry and National High-Speed Rail Corporation (HNSRC) have signed a tripartite pact with Japan International Cooperation Agency (JICA) for the development of Mumbai-Ahmedabad high-speed rail corridor. The pact is significant because it marks the finalisation of the methodology of project work. This, in turn, will boost actual project implementation.

JICA said in a statement that the agency has signed a Memorandum for General Consultancy (GC) to “provide design and bidding assistance for the public works and systems required for the construction of a high-speed railway linking two cities Mumbai and Ahmedabad in India”.

While JICA will bear the cost of GC up to 2020 and will contribute to the smooth implementation of the project, NHSRC will be in charge of the implementation of the project.

The project will be completed at a cost of approximately Rs 1 lakh crore. Japan has agreed to fund 80 per cent of the project through a soft loan of Rs 79,000 crore at an interest rate of 0.1 per cent, with a tenure stretching over 50 years and a moratorium period of 15 years.

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