Prime Minister Narendra Modi and Japanese Prime Minister Shinzo Abe on Thursday laid the foundation stone for the ambitious Rs.1.08 lakh crore ($17 billion) 508-km Ahmedabad-Mumbai High Speed Rail here.

Besides Modi and Abe, Railway Minister Piyush Goyal, Minister of State for Railways Manoj Sinha, Gujarat Governor O.P. Kohli, Gujarat Chief Minister Vijay Rupani and Maharashtra Chief Minister Devendra Fadnavis were also present.

Modi and Abe also laid the foundation stone for the Vadodara High Speed training institute.

The high speed rail project that is scheduled to be completed by 2022, has been financed by Japan.

Of the Rs 1.08 crore, Japan is giving a loan of Rs.88,000 crore at a minimal interest of 0.1 per cent for 50 years. And the repayment will begin only after 15 years.

The first tranche of the loan, Rs.6,000 crore, would be released immediately, while the remaining tranches will come after the completion of land acquisition.

About 825 hectares of land would be acquired for the project.

Of the 508 km stretch, 92 per cent (468 km) of the route will be elevated, six per cent (27 km) in tunnels and the remaining two per cent (13 km) will be on the ground .

The high speed train would also pass through the country’s longest tunnel of 21 km, of which seven km will be under the sea.

Twelve stations have been proposed that include Mumbai, Thane, Virar, Boisar, Vapi, Bilimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad and Sabarmati.

The distance will be covered in two hours and seven minutes if the train stops at four stations — Ahmedabad, Vadodara, Surat and Mumbai. If the train stops at all 12 stations, it will cover the distance in two hours and fifty-eight minutes.

According to Railway Ministry officials, the operating speed of the bullet train would be 320 kmph and the maximum speed would be 350 kmph.

Later in the day, Modi and Abe will participate in the 12th Annual Bilateral Summit in state capital Gandhinagar.

This will be the fourth annual summit between Modi and Abe, where they are expected to review the progress in the multifaceted cooperation between India and Japan under the framework of their Special Strategic and Global Partnership.

Abe arrived here on Wednesday on a two-day visit and was received by Modi at the airport who then took the visiting dignitary and his wife to the historic Sabarmati Ashram and a famous 16th century mosque before indulging in dinner diplomacy at a heritage property.