The train, that would run at speeds of 300-350 kmph, would be mostly funded by the Japan Investment Co-operation Agency (JICA).
It will fund 81% of the project cost of Rs 98,000 crore as a soft loan with a 50-year term, a moratorium of 15 years with an interest rate of 0.1% Railway Board chairman AK Mittal told reporters here on the sidelines of the ongoing Make In India Week event.
Besides, 20 per cent of the components will be sourced from Japan, but will be manufactured in India.
Mittal also said that the railway board has identified the Bandra-Kurla complex as the location for railway station in Mumbai.
Work on the high-speed rail corridor will start by late 2017 or early 2018 and will be completed in five years.
The Mumbai-Ahmedabad high speed corridor is one of the ambitious projects promised by Prime Minister Narendra Modi’s government and is on the priority list.