Indian Railways announced on Sunday it will invest Rs. 9, 800 crore in the bullet train project along the Mumbai - Ahmedabad corridor.
The train, that would run at speeds of 300 - 350 kmph, would be mostly funded by the Japan Investment Co - operation Agency (JICA) which would provide 81 percent of the investment as loan at an interest rate of 0. 1 percent, Railway Board chairman A. K. Mittal told reporters here on the sidelines of the ongoing Make In India Week event.
The loan will be spread over 50 years and will have a moratorium of 15 years, he added.
Besides, 20 percent of the components will be sourced from Japan, but will be manufactured in India.
Mittal also said that the railway board has identified the Bandra - Kurla complex as the location for railway station in Mumbai.
"The station will be constructed three levels underground and hence will not hinder the financial centre that is being planned in the same area. In fact, a high - speed rail will improve the valuation of the land, " he said.