Japan has offered a lucrative offer worth $15 Billion for Bullet Train Network in India. Japan is ready to finance the Bullet Train network between Mumbai and Ahmedabad for which they have also offered the loan at less than 1% of interest rate.
Japan likely to Finance India’s First Bullet Train Network
Japan is ready to finance the bullet train network between Mumbai and Ahmedabad which is about 505 Kilometres. Japan would be financing the project with $15 Billion at an interest rate of less than 1% which is virtually free finance for Indian Government.
Japan’s offer of finance and technology comes with a condition that India has to buy about 30% of equipments which includes coaches and Locomotives from Japanese companies. If India agrees to these terms and conditions then Japan would be investing about 80% of the cost of Bullet Train Project.
Japan earlier lost its bid of feasibility of High Speed Train between Mumbai and Delhi (1,200 Km) to China, the project was larger to Mumbai-Ahmedabad Project. Japan has the upper hand for getting the contract for Mumbai-Ahmedabad with the loan offering.
Bullet Train in India
The Chairman of Indian Railway Board, A.K Mittal said,
“There are several (players) offering the high-speed technology. But technology and funding together, we only have one offer. That is the Japanese,”
Indian Government has planned to build a high speed rail network across the country which would join metro cities like Delhi, Mumbai, Chennai and Kolkata. The Diamond Quadrilateral project needs to build a rail network of 10,000 Km.
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