Prime Minister Narendra Modi and Japan PM Shinzo Abe laid the foundation for 508-km bullet train project at Ahmedabad early on Thursday.
Shares of Bharat Heavy Electricals (BHEL) gained over 7 percent intraday on Thursday as the firm, along with Kawasaki, will make rolling stock for the Mumbai-Ahmedabad bullet train.
Prime Minister Narendra Modi and Japan PM Shinzo Abe laid the foundation for 508-km bullet train project at Ahmedabad early on Thursday. Speaking at the event, Abe said that it is a historic day and India and Japan have formed a new partnership. "We feel privileged to be a partner in India's first bullet train project," he said.
The bullet train project is expected to be completed within 2023, after which the train will be capable of running at the high speed of 350 km per hour.
The project, funded 80 percent by the Japan Investment Cooperation Agency (JICA) as a soft loan spread over 50 years at minimal interest rate, will reduce travel time between Mumbai and Ahmedabad from seven to two hours. The rest of the funding, amounting to Rs 9,800 crore, is borne by the Indian Railways, making the project one of its costliest.
For this project, the new Shinkansen Technology from Japan will come to India and be developed under Make in India scheme, as per Railway minister Piyush Goyal.The stock gained 12 percent in the past one month, while its three-day gain stood at 8 percent. At 10:48 hrs, Bharat Heavy Electricals was quoting at Rs 141.20, up Rs 8.65, or 6.53 percent on the BSE. It has touched an intraday high of Rs 142.30 and an intraday low of Rs 132.25.