Japan-India Relations
Exchange of Notes concerning Yen Loan to India for the Project for the Construction of Mumbai-Ahmedabad High Speed Rail (IV)
On March 20, in New Delhi, the capital of the Republic of India, Mr. SUZUKI Hiroshi, Ambassador Extraordinary and Plenipotentiary of Japan to India, and Mr. Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged notes concerning the provision of yen loan for the Project for Construction of Mumbai-Ahmedabad High Speed Rail (IV) (loan provision of up to 300 billion yen).
- Overview of the project
This project is to provide a loan to the Government of India for the construction of a high speed rail with the introduction of Japan’s Shinkansen system between Mumbai in Maharashtra and Ahmedabad in Gujarat. The new high speed train is expected to be able to travel the distance of 500 kilometers between Mumbai and Ahmedabad in two hours, instead of the five hours required by the current express train service for that distance. Through the realization of a mass passenger transportation system, this project is expected to contribute to a more efficient transportation network and promote economic development in the broad target areas. - Loan terms
- (1) Interest rate: 0.1% per annum
- (2) Repayment period: 50 years (including a 15-year grace period)
- (3) Procurement terms: Tied
December 2015: Signing of a memorandum of cooperation concerning the Mumbai-Ahmedabad High Speed Rail during a Japan-India Summit Meeting in Delhi
September 2017: Signing of an exchange of notes concerning the yen loan I (up to 100 billion yen)
October 2018: Signing of an exchange of notes concerning the yen loan II (up to 150 billion yen)
May 2022: Signing of an exchange of notes concerning the yen loan III (up to 100 billion yen)
India covers an area of approximately 3.29 million square kilometers (roughly 8.7 times the area of Japan), and has a population of 1.40756 billion people (World Bank, 2021) and a gross national income (GNI) per capita of 2,150 U.S. dollars (World Bank, 2021).