Japan is expected to win the right to construct India’s first bullet train, after losing an Indonesian high-speed rail deal to China, the Nikkei business daily reported on Tuesday.
Japan will offer more than 1 trillion yen ($8.11 billion) in loans to construct India’s Rs 98,000 crore fast train, according to the report.
Japan recently lost the bid to build Indonesia’s first fast-train because Beijing provided a $5 billion loan without guarantees.
The Japanese and Indian prime ministers -- Shinzo Abe and Narendra Modi respectively -- are expected to issue a joint statement on the deal, the Nikkei said. Abe is due to visit India later this week.
Tokyo was picked to assess the feasibility of building the 505 km corridor linking Mumbai with Ahmedabad, the commercial capital of Gujarat, and concluded it would be technically and financially viable.
Construction of the high-speed railway link will start from 2017 and will be completed in 2023, the Nikkei reported.