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Modi has pledged to invest billions of dollars to modernise India's creaking railway system, with the bullet train one of his key election promises ahead of his landslide victory in 2014.

India planned to complete construction and start services on the 500-kilometre railway by 2023.

When Modi came to Japan last November as part of the two countries' annual summits, he travelled by shinkansen with Abe from Tokyo to Kobe in western Japan and inspected a bullet train plant of Kawasaki Heavy Industries Ltd., a maker of shinkansen cars.

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Japan is a pioneer in high-speed rail networks, and its Shinkansen bullet train is among the fastest in the world.

The Mumbai-Ahmedabad high speed rail project is a key project of the NDA government that is expected to reduce the travel time between two cities by almost five hours.

Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe will look at ways to enhance "multifaceted" relations between the two countries and carry forward their special strategic and global partnership when they meet for the annual Summit on Wednesday. "Out of this Rs 1,10,000 crore, Japan is giving a loan of Rs 88,000 crore and the interest on this loan is minimal, ie 0.1 percent", Goyal said.

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"This bullet train is an endeavour to bring economic growth and prosperity in the country with the growth of Indian Railways adopting most modern technologies". Some Indian scientists have privately opined that both North Korea and Pakistan could not have advanced so much in both nuclear and missile technologies without concrete scientific and technological help from China. Investments in Gujarat from Japan are also expected to rise in the near future. The two leaders have met 10 times in the last three years, with the last being on the sidelines of the G20 Summit at Hamburg in July.

According to the Ministry official the Indian configuration will have 698 Standard Class seats and 55 Business Class seats, effectively doing away with the Japanese Gran Class.

Twelve stations have been proposed for the line: Mumbai Bandra Kurla Complex, Thane, Virar, Boisar, Vapi, Bilimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad and Sabarmati.

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Initially, Thirty-five trains will run in each direction every day, on a 516-long km route, of which, 92 km will be elevated and run atop bridges, 6 per cent will pass through a tunnel, and the remaining 2 per cent will run on the ground.