Japan's JICA extends Rs 11,400 cr loan to India
New Delhi: Japan International Corporation Agency (JICA) Wednesday decided to provide a Rs 11,400 crore loan for funding various infrastructure projects in India, including the Delhi-Mumbai Industrial Corridor (DMIC).
The loan will be used for construction of dedicated freight corridor for the development of DMIC, metro project in Chennai and piped water project in West Bengal, JICA said in a statement.
An agreement was signed between the government of India and JICA for providing soft loan to the tune of Rs 11,400 crore.
Of the total amount, 136119 million yen (Rs 7,860 crore) has been allocated for dedicated freight corridor project and construction of dedicated freight rail between Delhi and Mumbai, which is the base for setting up of DMIC.
"Industrial revival is crucial for economic growth and India's ambitious DMIC project is vital for promoting direct investment in India as well as Indian exports," JICA said in a statement.
The loan is to be repaid over a period of 40 years with 10 years grace period and carries a concessional rate of 0.20 percent.
Further, for construction of the Chennai Metro project, JICA extended a loan of 48691 million yen (Rs 2,811 crore), which would help alleviate overcrowding on the roads of the city which suffers from chronic traffic congestion, the statement said.
Another 14225 million yen (Rs 821 crore) would be extended for piped water supply project in Purulia district of West Bengal.
"The project will construct water supply facilities to provide safe and adequate drinking water," the statement.
Both the loans are to be repaid in 30 years with a grace period of 10 years and carries a concessional interest rate of 1.40 percent.
Chief Representative of JICA in India Shinya Ejima said the three projects will go a long way in meeting India's socio-economic development objective.
JICA is an independent institution and aims at contributing to the promotion of international cooperation and development of regions.