Bullet train project: Indian Government signs Rs 5,500 crore loan agreement with JICA

217

The Indian Government signed an agreement with the Japan International Cooperation Agency (JICA) which has agreed to provide an Official Development Assistance (ODA) loan of around Rs 5,500 crore (89,547 million Japanese Yen) as Tranche 1 on the ‘Project for the Mumbai-Ahmedabad High-Speed Rail (MAHSR)’ corridor, commonly known as bullet train corridor project.

The main objective of MAHSR corridor is to develop a high-frequency mass transportation system by constructing the High-Speed Rail between Mumbai and Ahmedabad, using Japan’s Shinkansen technology (Bullet Train), to enhance the mobility in India and contributing to regional economic development.

Katsuo Matsumoto, JICA chief representative in India, said, “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.”

Matsumoto further 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.”

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