Japan offers to fund India's bullet train project.

India's ambitious plan to construct the MumbaiAhmedabad high speed rail corridor reached a decisive stage recently, following Japan government's offer to fund the Rs. 988,050 million project at a low interest rate of 0.25% at recent's meeting of the Indo- Japan Joint Monitoring Committee (JMC).

The Japan government’s loan offer comes with the rider that 30% of the rolling stock for the project would be sourced from Japanese firms, sources said.

A financial Rate of Return (RoR) of 4% and an economic RoR of 12% has been projected on what will be India’s first high speed rail line, which is estimated to have a daily ridership of 40,000 passengers.

The fine prints of the project plan came up for intense discussions at recent's meeting of the JMC, officials said.

HINDUSTAN TIMES