Japan has given a highly concessional loan with repayment period of 50 years and 15 year moratorium. It has an interest rate of 0.1 percent. The project will be executed in a joint venture of the Indian and Japanese companies, Jaishankar said in a media briefing.
The high speed rail will be built using Japan's Shinkansen technology.
Read More: PM Abe begins his address with 'Namaste'
Japanese Prime Minister Shinzo Abe arrived in India on Friday on a three-day sojourn.