Business

Japan Resumes Funding India's Bullet Train Project With Rs 5,500 Crore

JAVED SAIFI | 0
3120
| September 29 , 2018 , 11:48 IST

Refuting the previous reports that the Japan International Cooperation Agency (JICA) has denied investing in the bullet train project, it has apparently signed an agreement with the Indian government to provide an Official Development Assistance (ODA) loan of 89, 547 million Japanese Yen, media reported on Saturday. 

The JICA has provided the financial assistance of approximately Rs 5,500 crore as part of its investments in the much-awaited bullet train project in India.

The high-speed railway cooperation's (HSRC) bullet train project will connect Mumbai-Ahmedabad using Japan's Shinkansen technology (Bullet Train).

Commenting on resuming funding in the bullet train project Katsuo Matsumoto, Chief Representative of JICA India 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. Both Maharashtra and Gujarat states have been the nation's growth drivers, and MAHSR is expected to further support such economic pulse as had the Shinkansen done for Japan.

Also Read: Bullet Train In India Faces New Hurdle As JICA Stops Funding

"With this project, we aim to simplify mobility, ease connectivity and enhance regional economic development with a safe and reliable inter-city transport system," he added.

Previously there were reports that JICA has stopped funding the bullet train project as it has only invested Rs 125 crore against the agreement of Rs 80,000 crore for the bullet train project.

The cost of the Bullet train project is estimated to be around Rs 1 Lakh crore. The Bullet train project will commence from January 2019 and the deadline to acquire the land before the commencement of the project is the end of 2018.

It is planned that the project will complete by 2022 on the occasion of 75th year of India’s Independence.