Japan and India will to sign agreement for India’s first bullet train
India-Japan to sign a pact for India’s first bullet train
Date: Dec 7, 2015
Source: Business Inside India
Japanese Prime Minister Shinzo Abe is coming to India on 11th December, and during his tour, he is most likely to finalise an agreement on high-speed train services in India, which means that India can soon get its first ‘Bullet Train‘.
Abe’s Special Adviser Hiroto Izumi will arrive in Delhi a few days before him, so that he can finalise the terms of the agreement. The high-level talks are expected to take place between Izumi and senior officials from Prime Minister’s Office and the railway ministry.
The first train is planned between Mumbai and Ahmedabad, cutting short the travel time from seven to two hours. A report submitted to the Indian government in July by Japan International Cooperation Agency had estimated the cost of this project at Rs 98,805 crore, and that the project would be operational by 2024.
Japan would most probably agree to finance the Rs 90,000 crore-plus railway project through a soft loan which would be charged with 0.5% interest. The repayment tenure for this loan would be of 50 years. Typically, this kind of project is financed at 1.5% interest and the tenure does not exceed 25 years.
“The rate of interest and repayment time proposed by Japan are extremely attractive for India. This has been possible only because of the push by the PMs of both the countries. We are hopeful this will also prompt other countries to go for lower interest rates for our infrastructure projects,” a PMO official told ET.
When Indian PM Modi visited Japan last year, Abe and Modi had agreed to twin Varanasi with Kyoto, as both cities share deep cultural and historic roots. Abe is likely to visit Varanasi on 12th December.
India opts for Japan bullet trains for Mumbai-Ahmedabad line
Date: Dec 8, 2015
Source: Nikkei Asian News
TOKYO — India will agree this week to adopt Japanese bullet train technology for a high-speed-rail project that Japan will also help finance, The Nikkei has learned.
Prime Minister Narendra Modi and Japanese counterpart Shinzo Abe will issue a joint statement on the deal Saturday during Abe’s visit to India.
The proposed 505km railway will link Mumbai, India’s most populous city, with Ahmedabad in the state of Gujarat to the north.
Abe will convey an offer of more than 1 trillion yen ($8.1 billion) in official Japanese lending for the roughly 980 billion rupee ($14.6 billion) project.
The two sides are discussing financing terms that would disburse about 100 billion yen a year over a decade or so. Senior Abe adviser Hiroto Izumi and Japanese foreign ministry officials on Monday wrapped up a trip to India, during which they discussed financing and other aspects of the project.
India ranked as the second-biggest recipient of Japanese-government-backed yen loans as of fiscal 2013, with a running total of 4.45 trillion yen, according to Japan’s Ministry of Foreign Affairs. The railway loan deal could propel it ahead of the largest borrower, Indonesia, which had a 4.72 trillion yen tally.
Japan has successfully sold its shinkansen bullet train technology in just one overseas market: Taiwan. The Japanese seek to provide a full range of equipment, from rails to rolling stock to control systems.
Once India decides to adopt Japanese train technology, it will hold a tender for contracts. A consortium including JR East, Kawasaki Heavy Industries and Hitachi is expected to bid.
The Japan International Cooperation Agency and India’s rail ministry began a joint feasibility study on high-speed rail two years ago. A report recommending the shinkansen format was issued this past July.
With trains zipping along at up to 320kph, the Mumbai-Ahmedabad railway is expected to shorten travel time between the two western Indian cities from around eight hours to roughly two. Construction is supposed to begin in 2017, with completion slated for 2023. India has plans for seven high-speed-rail corridors, starting with this one.
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