East China's Zhejiang Province has granted permission for the country's first high-speed railway project undertaken by private company, said the provincial economic planner Tuesday.

The railway, 226.56 kilometers long and designed for a maximum speed of 350 kmh, is an intra-provincial route connecting Shaoxing and Taizhou.

The project is jointly invested by private capital led by Fosun Group, state-owned China Railway, and Zhejiang Communications Investment Group Co. Ltd, as well as the local government.

The investment totaled 44.9 billion yuan (7.01 billion U.S. dollars), with private capital led by Fosun Group holding 51 percent of the shares.

Fosun Group signed the agreement with the Zhejiang provincial government in September. The railway is expected to be completed in 2021 and will operate for 30 years.