In a major win for Japan, it has signed a Memorandum of Co-operation (MoC) with India, to start Bullet Train under High Speed Rail (HRS) on Mumbai-Ahmedabad stretch. Prime Minister Narendra Modi signed the MoC with Japanese Prime Minister Shinzo Abe in New Delhi.
Japan will provide financial and technical assistance from to India to setup country's first Bullet Train. China was also pursuing the project however Japan offered much better terms to India. These are in addition to other areas of co-operation.
- Shinzo Abe signed the agreement on his visit to India.
- This will be first high speed rail line in India. The 508 km line will connect major cities of Mumbai and Ahmedabad. The journey will be only three hours
- The total project cost is Rs. 97,636 crores and will be implemented over a period of 7 years.
- Japan's Shinkansen Technology has offered a concessional loan of 12 billion dollars to India at an interest rate of 0.1 percent for a period of 50 years with a 15 years moratorium.
- The technology will be transferred to India under GoI's Make in India initiative.