On September 15, 2017, the Japanese International Cooperation Agency (JICA) signed an ODA loan agreement for 4 projects at 144.254 billion yen (1.3 billion USD) with the Government of India. As agreed upon in the loan agreement, the loan for the new railway will be developed and consulted by Japanese high-speed railroad developers.
The four projects are as follows...
(1) High-speed railway training facility construction project between Mumbai and Ahmedabad (loan amount: 94 million USD)
(2) Cargo exclusive railway construction project ( incl. electric locomotive procurement) (loan amount: 978 million USD)
(3) Gujarat State Investment Promotion Program (loan amount: 151 million USD)
(4) Alan and Soshiya district of Gujarat Ship Recycling Environmental Management Improvement Project ( loan amount: 76 million USD)
With this loan in place, the Japanese will provide the human resources and know-how of the Shinkansen to develop a high-speed rail line for the Indian government connecting the Delhi Metropolitan Area to Mumbai and the Midwest Gujarat Province.
Special Terms for Economic Partnership (STEP)
A stipulation in JICA ODA loan agreements is the utilization of advanced Japanese technologies and the employment of Japanese firms in overseas projects.