Abe helps launch India's first bullet train projectStaff Writer | September 14, 2017
Japanese Prime Minister Shinzo Abe and his Indian counterpart, Narendra Modi, launched work on India's first high-speed train, estimated to cost over $17 billion.
Asia The 508-kilometre network
"My dear friend Modi decided to bring high-speed railway and build a new India for which he chose the Shinkansen (bullet train). We are fully committed to support this initiative," Abe said after launching groundbreaking work for the project, being built with financial assistance from Japan.
"A strong India is good for Japan and a strong Japan is good for India."
The project costs INR110 billio. Japan will fund 81% of the outlay, nearly INR88 billion, in soft loans, at an interest rate of 0.1%. The loan will have to be repaid over 50 years.
India's railways carry an estimated 20 million passengers daily and have a poor safety record. The launch comes amid criticism that investments need to be directed to improve safety of the country's ageing railway infrastructure.
Modi defended the project saying it would provide a big boost to India's employment and growth, adding that the project was a gift from Japan to India given the concessional terms.
Abe and Modi are expected to sign a slew of pacts after holding talks.
Abe's visit and the launch of the projects are seen as symbolic of the growing ties between New Delhi and Tokyo amid China's growing assertiveness in the region. ■