Japan has considered funding aspect of HSR corridor: Minister

Japan today said it has looked into funding aspects of proposed high-speed rail corridor ( HSR) projects in India.

"With regard to competition, there were some presentations where funding issue was touched upon. The Japanese government has also looked into this aspect," Japan's Senior Vice Minister of Land, Infrastructure, Transport and Tourism Hiroshi Kajiyama said. He was replying to a query on the cost competition faced by Japan from others.

As per industry body CII, Ahmedabad-Mumbai-Pune rail corridor project cost is pegged at over Rs 60,000 crore, which is roughly about Rs 120 crore per kilometre. After a pre-feasibility study of four high-speed rail corridors out of the six proposed in India, Ahmedabad seems to be most economically viable, officials say.

"This (project) is at an initial survey stage .... We acknowledge that it is very difficult to say the cost will be how much, but we are very sure the cost is going to be very very high," Kajiyama said.

"With that, the Japanese government was willing to take the discussions forward and think about various possibilities and options that can be worked upon....For the time being it is the survey we need to focus on and next step would be the concrete survey. We would like to make proposals for concrete survey from our sides," he said.

On his meeting with Gujarat Chief Minister Narendra Modi, Kajiyama said, "I could feel the magnitude of expectations of Modi from the Japan side. Would Japanese companies will be setting up facilities in India, was a concern for him.

"Modi added that his state was encouraging foreign investments and welcomes foreign investment."