India & Japan sign MoC on High Speed Rail on Mumbai-Ahmedabad sector
India and Japan have signed historic Memorandum of Co-operation (MoC) to introduce High Speed Rail (HRS) on Mumbai Ahmedabad sector to revolutionize Indian Railways.
The MoC was signed in presence of Prime Minister Narendra Modi and visiting Japanese Prime Minister Shinzo Abe in New Delhi.
This agreement confirms developing of high speed rail corridor using of Japanese high speed rail technologies along with financial and technical assistance from Japan.
Under the agreement
- The HRS project will be India’s first high speed rail line. It is a 508 km line connecting the cities of Mumbai and Ahmedabad.
- The total project cost is 97,636 crores rupees and will be implemented in 7 years. It will reduce travelling time between the two cities from eight hours to around three.
- Japan will extend highly concessional loan of 12 billion dollars and technical assistance on easy terms for this project through its Shinkansen Technology.
- The loan will provided with the interest rate at 0.1 per cent for a period of 50 years with a 15 years moratorium.
- The cooperation on this project will also be fixed on transfer of technology and Make in India initiative. Japan will also assist India in training of personnel for High Speed Rail.
Civil Nuclear agreement
India and Japan also have reached substantive Agreement on Cooperation in the Peaceful Uses of Nuclear Energy. Under it both sides have confirmed cooperation in the peaceful uses of nuclear energy. The final deal will be signed after certain technical and legal issues are thrashed out.