The Government of India and the Japan International Cooperation Agency (JICA) have signed a loan agreement to finance a high-speed rail line connecting Ahmedabad to Mumbai in India.

According to the agreement, JICA will provide JPY100 billion (US$740.6 million) as official development assistance (ODA) with a repayment period of 50 years for the construction of the HSR line.

The loan will be used to finance construction works for a 508 km high-speed railway line between Mumbai, Maharastra and Ahmedabad, Gujarat. Once complete, it will improve the efficiency of the transportation network and contribute to broad economic development.