Mumbai-Ahmedabad bullet train: India unlikely to import 'Shinkansen' from Japan following failed price negotiations and revised price norms

Instead, the country has embraced a Make-in-India strategy, awarding the train manufacturing contract in September to the BEML Ltd-Medha Servo Drives joint venture, which produces Vande Bharat trains, according to the report. 

"Negotiations with the Japanese government to procure Shinkansen trains are ongoing, but discussions have slowed considerably over the past six months," an official familiar with the matter told Moneycontrol.

The two governments have yet to reach an agreement on pricing and timelines for conducting test runs, the report added. 

Efforts to resolve these issues included a visit to Japan by Railway Minister Ashwini Vaishnaw and other officials in September.

However, the talks ended without a resolution. 

"Importing Shinkansen trains is a costly proposition," a second official explained. "Moreover, their lifetime maintenance would require Japanese expertise, further driving up the overall project cost." 

Despite these hurdles, Japan International Cooperation Agency (JICA) remains committed to funding Rs 59,396 crore for the project, according to Moneycontrol.

The terms of the loan are being renegotiated to avoid further delays in the joint venture's completion.

Originally launched in 2017, the project was slated for completion by December 2023. 

According to the Moneycontrol report, the Ministry of Railways had not responded to requests for comment.