India, Japan sign Loan Agreement for Bullet Train Funds
India has signed two loan agreement with Japan International Cooperation Agency (JICA) for construction of Mumbai-Ahmedabad High Speed Rail Project and Kolkata East West Metro Project. Under these agreements, Japan will provide Official Development Assistance (ODA) loan of around Rs 5,500 crore as tranche 1 for Mumbai-Ahmedabad bullet train project Rs.1619 crore for tranche 3 Kolkata East-West Metro Project .
Mumbai-Ahmedabad High Speed Rail Project (I): Its objective is to develop mass and high frequent transportation system by constructing high speed rail between Mumbai and Ahmedabad with use of Japanese high speed rail technologies. It will improve connectivity in India. It is India’s first high-speed rail project (bullet train) project.
Kolkata East West Metro Project (III): Its objective is to cope with increase in traffic demand in Kolkata metropolitan area by extending mass rapid transit system. It will also improve urban environment through mitigation of traffic jams and decrease of pollution caused by increasing motor vehicles.
India and Japan have had long and fruitful history of bilateral development cooperation since 1958. In the last few years, economic cooperation between both counties has steadily progressed. This further consolidates and strengthens the Strategic and Global Partnership between India and Japan.