Japan has offered a ¥71 billion (INR 3,943 crores) loan for the development of Mumbai Metro’s underground third line connecting Colaba to SEEPZ at Andheri. Besides this, they will also help conduct a feasibility study for high speed rail link between Mumbai and Ahmedabad.
This new announcement was made after a joint meeting held between Indian PM Manmohan Singh and Shinzo Abe, PM of Japan, which was held in Tokyo. The upcoming Mumbai Metro link connects 27 stations along the route and is expected to come up at a cost of INR 24,000 crores. A third metro link is also scheduled to be completed by 2020 as against an earlier expected time limit of 2016.
This loan will be offered by Japan International Cooperation Agency (JAICA) and will be at a rate of 1.44%. The deadline for completion of this work was set at 2016 but will now be completed by 2020. The loan is the first of a three part installment which is scheduled to cover 40% of the project cost.
Apart from this, India is also working towards developing a high-speed rail link between Mumbai – Ahmedabad and Mumbai – Delhi. The priority is the former. With estimated cost of INR 63,000 crores, Indian Railways, French National Railway Company (SNCF) and now Japan, all will help to design this highspeed rail link where trains will travel at 300 kmph, against today’s fastest trains, which travel at 150 kmph.
India will also be receiving a loan of ¥17.7 billion for Phase II of campus development at IIT Hyderabad besides for assistance of Indian Institute of Information Technology, Design and Manufacture at Jabalpur.