Japan appears to have moved ahead of China in the battle to develop India’s potentially lucrative high-speed rail network.
The Economic Times this week reported that Japan has offered the Indian government a low interest loan of US$15 billion for the high-speed rail project. And according to AK Mittal, chairman of the Indian Railway Board, this puts Japan ahead of its Chinese rivals.
“There are several [countries] offering the high-speed technology. But technology and funding together, we only have one offer. That is the Japanese,” Mittal was quoted saying.
Tokyo is already conducting a feasibility study for a new 505km high-speed rail line connecting Mumbai with Ahmedabad, and has reportedly offered to meet 80% of the project costs, on the condition that India buys its trains and equipment from Japanese companies. China meanwhile, is conducting the feasibility study for the Mumbai-Delhi line.
In total, India is planning to develop more than 10,000km of high-speed railway between Delhi, Mumbai, Chennai and Kolkata.
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