TOKYO, Japan – Japan and India agreed Wednesday (May 29th) to conduct a joint feasibility study into India's first high-speed railway, which could make Japanese bullet-train technology the front-runner for any future contract, AFP reported.
Japanese Prime Minister Shinzo Abe and his Indian counterpart Manmohan Singh said the two countries would split the cost of the study into the railway linking Mumbai and Ahmedabad. Singh left Japan for Thailand on Thursday after concluding his three-day visit there.
The Nikkei Business Daily reported that Abe would offer an incentive of 101.7 billion yen ($1 billion) in construction loans to India amid competition from France and its TGV high-speed rail network.
The Mumbai-Ahmedabad rail line would stretch 500km and cost up to one trillion yen ($9.9 billion), Nikkei reported, adding the two governments plan to finish technological reviews and cost analyses by March 2014.
Singh also called for stronger security ties, describing India and Japan as "natural and indispensable partners".