Japan offers 225 bn Yen loan to India for metro rail, crop diversification, water supply projects

at 6:56 pm
Japan

New Delhi (NVI): Japan will provide over 225 billion Yen loan to India various projects including Bengaluru Metro Rail Project, Delhi Mass Rapid Transport System Project, Himachal Pradesh Crop Diversification Promotion Project and Rajasthan Rural Water Supply and Fluorosis Mitigation Project, the Japanese Embassy said today.

Suzuki Satoshi, Ambassador of Japan to India, and Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, exchanged Notes here, concerning the provision of yen loans and of a grant aid, the Embassy said.

The total loan amount for the four major projects is 229.132 billion Yen while a separate 4 billion Yen grant has been approved to improve the power supply situation in Andaman and Nicobar islands.

A loan up to 52.036 billion Yen has been offered for Phase 2 of Bengaluru Metro Rail Project. “This project is to provide a loan to the Government of India for the construction of three metro lines (Line 2A, Line 2B and Line 6) of totaling¬†80km in the Bengaluru Metropolitan area in Karnataka. By 2029 (two years after the completion of the project),” the Japanese Embassy said in a statement.

Another loan of up to 119.978 billion Yen has been offered for Phase 4 of Delhi Mass Rapid Transport System Project. “This project is to provide a loan to the Government of India for the construction of three metro lines (extension of Line 7 and Line 8 and construction of Line 6) of Delhi Metro, totaling to 65km. By 2028 (two years after the completion of the project),” the Embassy said.

A loan up to 11.302 billion Yen has been offered for Phase 2 of Himachal Pradesh Crop Diversification Promotion Project. “This project is to provide a loan to the Government of India for the development of agricultural production infrastructure such as small-size irrigation and access farm roads, for the support of organization of farmers group and agricultural technology, as well as for the strengthening of the capacity of Department of Agriculture (DOA) in Himachal Pradesh,” Japanese Embassy said.

“By 2031 (two years after the completion of the project), the irrigated area will expand to 7933 ha and the cultivated area of vegetables will be 3,370 ha in rainy season and 3,574 ha in dry season. It is expected that this loan will promote crop diversification and high value crops as well as boosting income of farmers, contributing to sustainable and inclusive development of the targeted areas,” it added.

For Phase 2 of Rajasthan Rural Water Supply and Fluorosis Mitigation Project, a loan up to 45.816 billion has been offered. “This project is to provide a loan to the Government of India for the construction of water supply facilities, as well as for the strengthening of organizational capacity of Village Water Sanitation Committee on the use and management of the safe water, including fluorosis mitigation, and on the activities to raise awareness of local residents in two districts in the¬†northeastern and west region of Rajasthan.

“By 2030 (two years after the completion of the project), the average daily water capacity provided by newly constructed water facilities will be 47,500 cubic meters in Jhunjhunu district and 81,500 cubic meters in Barmer district. It is expected that this loan will provide stable and clean water to the local residents, contributing to sustainable and inclusive growth through the improvement of their living convenience, sanitation and health,” read the Embassy statement.

Apart from that, a grant amount of 4.016 billion Yen has been offered for the Project for Improvement of Power Supply in Andaman and Nicobar Islands.

“This project provides batteries and related facilities in South Andaman, to stabilize electricity supply and promote effective utilization of electricity generated by solar PV. The project will contribute to the enhancement of industrial competitiveness in South Andaman. It is expected that this Grant Aid will lead to sustainable economic growth and mitigation of climate change impacts in South Andaman,” the Embassy said while giving overview of the grant project.

-ARK