Taking India’s first bullet train closer to reality, work on the Mumbai-Ahmedabad project will commence soon, with the first tranche of $1 billion from a total loan of about $14 billion to be released during the visit of Japanese Prime Minister Shinzo Abe to the country on September 12-14. The $17-billion high-speed railway line of 508 km, which will be built on Japan’s Shinkansen technology, is expected to be operational by 2022-23, India’s 75th year of independence.
The initial agreement on the project was signed between India and Japan during Abe’s last visit to India in December 2015. The foundation ceremony of the project will be laid by Prime Minister Narendra Modi and Abe near Ahmedabad on September 13, official sources said.
Of the project cost of Rs 1,10,000 crore, Rs 88,000 crore will come from Japan as a 50-year soft loan at a benign interest rate of 0.1%. The amount to be repaid is just Rs 90,500 crore. The initial disbursal of $1 billion will be used to give compensation for land, set up a training institute in Ahmedabad and for some construction-related activities. Read more
Credit By:- Financial Express