The Japan International Cooperation Agency (JICA) has recently announced that it has signed an agreement with India to provide an Official Development Assistance (ODA) loan of Rs 18,750 crore as tranche 4 for the construction of Mumbai-Ahmedabad High-Speed Rail (MAHSR). This is the largest amount committed through a single project loan agreement in the history of JICA across the globe.
JICA has been supporting the MAHSR project since 2017 by providing ODA loans with a cumulative commitment amount of Rs 40,625 crore. Additionally, JICA has been providing technical assistance, including feasibility study, basic and detailed design, trainings in Japan, and dispatch of Japanese Shinkansen experts to the executing agency of MAHSR project, National High Speed Rail Corporation Limited (NHSRCL).
The Mumbai-Ahmedabad High-Speed Rail is a 508-kilometer-long high-speed train corridor that will connect Mumbai and Ahmedabad. The project is expected to reduce travel time between the two cities from the current 7 hours to just 2 hours. The project is also expected to boost economic growth by creating job opportunities and promoting tourism.
The project is being implemented by NHSRCL, which is a special purpose vehicle created for the project. The total cost of the project is estimated to be around Rs 1.08 lakh crore, out of which around 80% is being funded by JICA through ODA loans.
The Mumbai-Ahmedabad High-Speed Rail project is a significant milestone in India’s infrastructure development and is expected to revolutionize the way people travel in the country. The project is also expected to have a positive impact on the environment by reducing carbon emissions and promoting sustainable transportation.
