In a landmark move that marks a significant step towards revolutionizing India’s transportation infrastructure, the Japan International Cooperation Agency (JICA) has signed a monumental loan agreement with the Indian Government. This agreement, amounting to a staggering ₹22,627 crore (approximately 100 billion Japanese Yen), represents the fifth tranche of funding for the much-anticipated Mumbai-Ahmedabad High-Speed Rail (MAHSR) project.
This funding initiative by JICA is not just another transaction; it holds the distinction of being the largest amount ever committed through a single project loan agreement in JICA’s global history. Such a substantial investment underlines the magnitude and importance of the MAHSR project, not only for India but in the context of international development and cooperation.
The Mumbai-Ahmedabad High-Speed Rail project, a pioneering venture in India’s rail transport sector, aims to introduce a high-frequency mass transportation system employing Japan’s advanced Shinkansen technology, widely recognized as bullet train technology. This venture is expected to significantly enhance mobility within India, thereby contributing to regional economic development.
The high-speed rail, operating at a speed of 320 km/h, will cover the 508.17 km distance between Mumbai and Ahmedabad in approximately two hours. This marks a dramatic improvement over current travel times – a reduction from about nine hours by bus or six hours by conventional railways.
JICA’s commitment to the MAHSR project extends beyond financial assistance. Since 2017, the agency has been actively involved, providing a cumulative commitment amount of Japanese Yen 1 trillion (approximately Rs. 59,396 crore). JICA’s contribution is pivotal, funding about 88% of the financing requirement for the project, which has an estimated cost of ₹1.25 lakh crore.
Moreover, JICA’s role encompasses technical assistance, including feasibility studies, basic and detailed design, training in Japan, and station area development technical cooperation projects. This comprehensive support also involves dispatching Japanese Shinkansen experts to the executing agency of the project, the National High Speed Rail Corporation Limited (NHSRCL).
The MAHSR project, currently the only sanctioned high-speed rail project in India, is a testament to the growing collaboration and strategic partnership between India and Japan in the realm of infrastructure development. This project not only symbolizes technological advancement but also represents a significant leap towards modernizing India’s transportation system, which is set to redefine the landscape of rail travel in the country.