Hyperloops use magnets to levitate pods inside airless tubes, which creates conditions to shuttle people

Highlights The hyperloop will cut travel time between Mumbai, Pune to 35 minutes

The route from Mumbai to Pune is one of India's busiest

The project is proposed as a replacement to existing rail infrastructure

Maharashtra has granted infrastructure project status for a $10-billion plan to build the world's first ultra-fast hyperloop project, aiming to link the financial hub of Mumbai with the neighbouring city of Pune.

Proposed as a replacement to existing rail infrastructure, hyperloops use magnets to levitate pods inside an airless tube, creating conditions in which the pods can shuttle people and freight at speeds of up to 750 miles (1,200 km) per hour.

The status could help fast track land acquisition for the project over a 117.5-km (73-miles) stretch that will shuttle people between the cities in about 35 minutes.

"This project would mark the beginning of a new era in the country's transport sector," the state government said in a statement late on Wednesday.

Although the plan's original proponent was a consortium of the United Arab Emirates' DP World and Virgin Hyperloop One, which submitted the initial proposal, the project is to be opened up to other competing bids.

The first phase of the plan envisages an 11.8-km-long (7.33-mile) track to be built in up to 2-1/2 years with an investment of around Rs 5,000 crore ($724 million) in Pune, the government said.

In a separate statement, DP World said it was willing to invest $500 million in private capital to complete the project's first phase to prove that the technology is safe and viable.

The project is expected to cost about Rs 70,0000 crore ($10.1 billion), the state government said, and it is still unclear how the project will be funded.

The route from Mumbai to Pune is one of the country's busiest, with roughly 75 million passenger journeys each year.