India and Japan sign 232.86 billion yen loan agreement; grant to finance infrastructure projects

Reaffirming India’s commitment to sustainable development, the Center on Friday signed agreements with Japan to help the first ODA project in the Andaman and Nicobar Islands, a crop diversification project in Himachal Pradesh and a rural water supply and fluorosis mitigation project in Rajasthan. Japanese envoy to India Suzuki Satoshi and additional finance ministry secretary CS Mohapatra exchanged notes in New Delhi for loans and a grant worth a total of 232.86 billion yen (2.11 billion yen dollars).

Significantly, the grant will help Phase 2 of the Bengaluru metro rail project, which is expected to receive an amount of up to 52.036 billion yen. Phase 2 includes three metro lines (line 2A, line 2B and line 6) totaling 80 km in the metropolitan area of ​​Bengaluru. The project is expected to be completed by 2029, after which the number of rail services and the daily passenger distance will also increase.

“This loan is expected to meet the growing demand for transport, helping to strengthen industrial competitiveness by reducing congestion and traffic dangers,” read a press note from the Embassy of the United States. Japan.

119.978 billion yen for Delhi metro extension

The total grant of 232.86 billion yen signed on Friday will also propel the Delhi metro project which is expected to expand existing metro transport with the construction of three more lines. Phase four of the Delhi Mass Rapid Transit System project received a loan of up to 119.978 billion yen and is expected to be completed by 2028, a year ahead of the Bengaluru metro project. Relevantly, Japan has so far provided more than 1.3 trillion yen (about 86,000 crore) in aid to develop metro systems in Delhi, Bengaluru, Kolkata, Chennai, Mumbai and Ahmedabad.

The third project to benefit from the Japanese government-sanctioned loan is phase two of the Himachal Pradesh Crop Diversification Promotion Project which is expected to receive up to 11.302 billion yen. “This project consists of providing a loan to the Indian government for the development of agricultural production infrastructure such as small-scale irrigation and access roads to farms, to support the organization of farmer groups. and agricultural technology, as well as for building the capacity of the Ministry of Agriculture (DOA) of Himachal Pradesh, ”the Japanese statement read.

The crop diversification project which is expected to be completed by 2029 aims to expand the irrigation area as well as increase the income of farmers, thus contributing to the sustainable and inclusive development of the targeted areas.

45.816 billion yen of the total grant amount will go to Phase 2 of the Rajasthan Rural Water Supply and Fluorosis Mitigation Project. The project aims to strengthen the organizational capacity of the Village Water Sanitation Committee on the use and management of drinking water, including the mitigation of fluorosis and is expected to be completed by 2028. D ‘ by 2030, the project is expected to massively increase average daily water consumption. capacity.

The grant will also go to the Andaman and Nicobar Islands Electricity Improvement Project. “This project provides batteries and related facilities in southern Andaman, to stabilize the electricity supply and promote efficient use of electricity produced by solar photovoltaic energy. The project will help improve the industrial competitiveness in southern Andaman, ”the Japanese press release said while detailing the plans. The loans have an interest rate of 1.15% per annum and a 30-year repayment period, including a 10-year grace period.

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