JICA gives 3rd tranche of Rs 6,000 cr loan for Mumbai-Ahmedabad High Speed Rail Project

Japan International Cooperation Agency (JICA) on Monday signed a loan agreement with the Government of India to provide an Official Development Assistance (ODA) loan of 100,000 million Japanese Yen (approx Rs 6,000 crore) as tranche 3 on the ‘Project for the Construction of Mumbai-Ahmedabad High-Speed Rail (MAHSR). The objective of the project is to develop a high-frequency mass transportation system by constructing the High-Speed Rail between Mumbai and Ahmedabad, using Japan's Shinkansen technology (also known as the "Bullet Train"), thereby enhancing mobility in India and contributing to regional economic development.

The loan agreement was signed between Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India and Watanabe Jun, Senior Representative, JICA India. JICA has been supporting the project for the Mumbai-Ahmedabad High-Speed Rail by providing ODA loans. The loan agreement was signed on July 25, 2022, which is subsequent to the JPY 250,000 million (approximately Rs 18,000 crore) package of JICA’s commitment in 2017.

The loan agreement between JICA and the Centre came days after Chief Minister Eknath Shinde gave all clearances for the Mumbai-Ahmedabad bullet train to boost the development which was stuck up during the last two and half years of the Maha Vikas Aghadi government. Thereafter, the National High Speed Rail Corporation, which is the executing agency of the project, has floated tender for the design and construction of underground terminal and tunnel at the Bandra Kurla Complex for the bullet train. The Shinde-Fadnavis government has taken a policy decision to extend necessary support and approvals for the Rs 1.1 lakh crore bullet train project.

Watanabe Jun, Senior Representative, JICA India said, “By introducing Japan's High Speed Rail technology, this project has emerged as a symbol of Japan-India collaboration. We have witnessed great progress in civil work so far. We believe that the day is approaching when the Shinkansen System adopted in the project will contribute to region-wide economic and social development, which will bring about income generation to local residents. With this project, we aim to simplify mobility and ease connectivity with a safe and reliable inter-city transport system. This Japan-India collaboration will ensure Transfer of Technology from Japan's High Speed Rail system to India, and also give a boost to the "Make in India" initiative."