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
- India and Japan have signed an MoU on cooperation and assistance in the Mumbai – Ahmedabad High Speed Rail Project (referred by many as Bullet Train project).
- Japan has offered an assistance of over Rs.79,000 crore for the project.
- The loan is for a period of 50 years with a moratorium of 15 years, at an interest rate of 0.1 per cent.
- The project is a 508 Kilometer railway line costing a total of Rs. 97,636 crore, to be implemented in a period of seven years.
- It has been agreed that Shinkansen Technology will be adopted for the project.
- The cooperation of Japan will be fixed on transfer of technology and “Make in India”. Japan will assist India in training of personnel for HSR.
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.