JICA signs ₹22,627 crore loan agreement with India for Mumbai-Ahmedabad Bullet Train Project

New Delhi, India (Urban Transport News): The Japan International Cooperation Agency (JICA) has entered into a groundbreaking agreement with the Indian Government, solidifying an official development assistance loan of Rs 22,627 crore as the fifth tranche for the financing of the Mumbai-Ahmedabad High-Speed Rail Project. This colossal commitment not only signifies a significant financial boost but also marks the largest loan ever provided by the Japanese government agency in its history.

The estimated cost for the ambitious 508-km Mumbai-Ahmedabad High-Speed Rail Project stands at approximately Rs 1.25 lakh crore, with JICA slated to contribute a substantial 88% of the financing. Expressing the magnitude of this commitment, a representative from JICA stated, "JICA has been supporting theMumbai-Ahmedabad High-Speed Rail (MAHSR) project by providing ODA (Official Development Assistance) loans with the cumulative commitment amount of Japanese Yen 1 trillion (Rs 59,396 crore) since 2017."

This financial commitment from JICA goes beyond mere monetary support. The agency's assistance includes a range of technical contributions, such as feasibility studies, detailed design work, training programs in Japan, collaboration on station area development, and the deployment of Japanese Shinkansen experts working alongside the executing agency, the National High-Speed Rail Corporation Ltd.

In response to the agreement, the Indian government expressed its gratitude for the enduring partnership with Japan. "This commitment not only bolsters the financial aspect but also brings invaluable technical expertise, ensuring the successful realization of the Mumbai-Ahmedabad High-Speed Rail Project," said a government spokesperson.

Beyond the Mumbai-Ahmedabad High-Speed Rail Corridor, the Indian government is actively planning high-speed rail connectivity in three major cities—New Delhi, Chennai, and Kolkata. The National High-Speed Rail Corporation Ltd, a 100% subsidiary of Rail Vikas Nigam Ltd, is spearheading the execution of the Mumbai-Ahmedabad corridor.

This partnership between JICA and the Indian government not only cements a historic financial commitment but also underscores the collaborative efforts between the two nations in advancing high-speed rail technology and infrastructure.