Japan International Cooperation Agency (JICA) has signed a loan agreement with the Centre to provide an Official Development Assistance (ODA) loan of about ₹6,000 crore or 100 billion Japanese Yen as the third tranche for the construction of Mumbai-Ahmedabad High-Speed Rail (MAHSR).

The loan agreement was signed on July 25 and comes after a ₹18,000 crore package of JICA’s commitment in 2017.

“The objective of the project is to develop a high-frequency mass transportation system by constructing the High-Speed Rail between Mumbai and Ahmedabad, using Japan’s Shinkansen technology (also known as the bullet train), thereby enhancing mobility in India and contributing to regional economic development,” JICA said in a statement on Monday.

The loan agreement was signed between Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Watanabe Jun, Senior Representative, JICA India.

“The MAHSR project has contributed to the development of India’s first High Speed Rail initiative... This Japan-India collaboration will ensure transfer of technology from Japan’s High Speed Rail system to India, and also give a boost to “Make in India” initiative,” said Jun.

JICA has been supporting the project for the Mumbai - Ahmedabad High-Speed Rail by providing ODA loans. National High Speed Rail Corporation Limited (NHSRCL) is the Executing Agency of the Project.