Japanese aid for Indian infrastructure
NEW DELHI: Japan has agreed to grant 375 Billion Yen (US$ 3.45 Billion) long-term loan for nine urban infrastructure projects including highways, metro trains, rail corridors, water supply, pollution abatement, Community-Based Forest Management, and Livelihoods Improvement in India.
To be returned in 30-40 years, this is the Official Development Assistance (ODA) provided by Japan to India through its agency the Japan International Cooperation Agency (JICA) on very easy interest rates.
On March 27, Suzuki Satoshi, Ambassador Extraordinary and Plenipotentiary of Japan to India, and Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged notes concerning the provision of yen loan after JICA signed loan agreements with the Government of India in Delhi
According to JICA, the construction of dedicated freight railways in Gujarat, Rajasthan and Haryana to realize the Delhi-Mumbai Industrial Corridor (DMIC), the part of Dedicated Freight Corridor Project (Phase 1)(IV) earned maximum loan provision of up to 130 billion yen. The distance traveled by vehicles will increase from 38,000 km to 250,000 km and the number of trains will increase from 33 to 222 in comparison with 2007.
Through responding to the increase in cargo transport demand and improving the efficiency of the logistics network, this project will contribute to economic development and improvement of the environmental conditions in the broad target areas.
JICA agreed to give loans up to 13.967 billion yen for the construction of the Ahmedabad Metro network dealing with chronic traffic congestion. This project is to provide a loan to the Government of India for the construction of two metro lines (North-South and East-West) in the Ahmedabad metropolitan area in Gujarat.
On the completion of this project, the travel time is likely to be reduced from approximately 70 minutes to approximately 40 minutes on the North-South Line, and approximately from 98 minutes to approximately 42 minutes on the East-West Line. This project is also expected to alleviate traffic congestion and traffic pollution in the metropolitan area dealing with the increasing transportation demand, thereby contributing to the promotion of the economic growth of India.
The setting up of the water supply facilities to ensure a safe and adequate supply of drinking water under the Madhya Pradesh Rural Water Supply Project attracted a loan provision of up to 55.470 billion yen.
This project aims at providing a loan to the Government of India to construct the water supply facilities in three northwestern districts of Madhya Pradesh. The average daily water supply by the newly constructed waterworks facilities will be 96,634 m3 (East area) and 92,296 m3 (West area). Through this project for sustainable and safe waterworks services, it is expected to improve the sanitary condition and living environment of local residents.
Courtesy – Asian Community News