Government inks pact for Rs 22,627cr Japanese loan to finance bullet train project
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
The Japan International Cooperation Agency (JICA) has signed a loan agreement with the Central government to provide an Official Development Assistance (ODA) loan of 400 billion Japanese Yen (approximately Rs 22,627 crore) as tranche five for the construction of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project.
"This is the largest commitment amount through a single project loan agreement in the history of JICA, across the globe," according to a JICA statement issued on Thursday.
JICA has been supporting the MAHSR bullet train project by providing ODA loans with the cumulative commitment amount of JPY 1 trillion and 50 billion (Rs 59,396 crore) since 2017.
This assistance goes beyond the financial aid to include a range of technical contributions, such as feasibility studies, fundamental and intricate design work, training programmes in Japan, collaboration on station area development, and the deployment of Japanese Shinkansen experts to work alongside the executing agency, the National High-Speed Rail Corporation Limited (NHSRCL), JICA said.
The objective of the project is to develop a high-frequency mass transportation system by constructing the High-Speed Rail between Mumbai and Ahmedabad, using Japan's Shinkansen technology (also known as the Bullet Train), thereby enhancing mobility in India and contributing to regional economic development.
Saito Mitsunori, Chief Representative, JICA India said: "I am happy to witness great progress in the MAHSR project. As we mark the signing of the latest loan agreement, we are once again reminded to renew our commitment to support the NHSRCL and various stakeholders towards achieving the goal of the successful completion of the project.
"JICA continues to remain committed to bolstering mobility and supporting the regional economic development in India."
