Press Releases - From Embassy
Press Release No.8
- The Exchange of Notes for Rs.10,565 crore loan package was concluded today -
1.The Government of Japan today agreed to extend soft loan assistance to six projects totaling 215,611 million yen (approximately Rs.10,565 crore). The Exchange of Notes to formalize the arrangements to this effect was concluded on March 29th 2010 at a ceremony held in the Ministry of Finance in New Delhi. The notes were signed and exchanged between H.E. Mr. Hideaki Domichi, Ambassador of Japan to India, and Mr. Alok Sheel, Joint Secretary, Ministry of Finance, Government of India, on behalf of their respective Governments.
2.The loan package covers six projects in the areas of transportation, irrigation and environment. These concessional loans will be made available through the Japan International Cooperation Agency (JICA), at the interest rate ranging from even as low as 0.2% to 1.4% per annum, with the repayment period of 30 years (40 years in case of Dedicated Freight Corridor Project) including the grace period of 10 years. (See Enclosure for outline of all the 6 projects.)
3.The loan package includes Dedicated Freight Corridor Project (Phase 1) (II), which amounts for 90,262 million yen (approximately Rs.4,423 crore). DFC is the flagship project of Japan-India cooperation. Western DFC was already commenced with the signing of the engineering services loan last October. By the loan extended today, this flagship project will start in full swing.
4.India is the largest recipient of Japan’s ODA for FY2009, making itself as the top recipient partner for seven consecutive years since FY2003. This reflects the growing Japan-India development partnership and the importance Japan attaches to the bilateral ties with India.
5.The main objectives of Japanese loan assistance to India are to support India’s efforts to sustain economic growth, to reduce poverty, to build economic and social infrastructure, and to tackle environmental issues.
1. List of Projects for FY2009
2. Outline of Projects for FY2009
LIST OF PROJECTS
|(in million yen)|
|1.||Delhi Mass Rapid Transport System Project (Phase 2) (V)||33,640|
|2.||Kolkata East-West Metro Project (II)||23,402|
|3.||Chennai Metro Project (II)||59,851|
|4.||Dedicated Freight Corridor Project (Phase 1) (II)||90,262|
|5.||Rengali Irrigation Project (II)||3,072|
|6.||Sikkim Biodiversity Conservation and Forest Management Project||5,384|
|※ Including DFC E/S loan signed in October 2009, the total amount of Japan’s ODA loans to India for FY2009 is 218,211 million yen.|
1. Delhi Mass Rapid Transport System Project (Phase 2) (V)
This project aims for the construction of a total length of 414km of subway and elevated and above-ground railway in Delhi. This will help to activate the economy and improve the environment by relieving congestion and reducing the emission of exhaust gases in the capital city. In Phase 2, the target is approximately 83km.
2. Kolkata East-West Metro Project (II)
This project aims for the construction of a total length of 14km of subway and elevated and above-ground railway in Kolkata. This will help to activate the economy and improve the environment by relieving congestion and reducing the emission of exhaust gases in the city, where heavy traffic is acknowledged as one of the most serious problems of the urban area.
3. Chennai Metro Project (II)
This project aims for the construction of a total length of 43km of subway and elevated and above-ground railway in Chennai. Chennai is the largest urban area in the southern part of India with high population density. This project will help to activate the economy and improve the environment by relieving congestion and reducing the emission of exhaust gases in the city.
4. Dedicated Freight Corridor Project (Phase 1) (II)
DFC project envisages a western corridor from Delhi to Mumbai, stretching over 1,400km, to cater for the increasing container transport requirements. Phase 1 of the project covers the section between Rewari (Haryana) and Vadodara (Gujarat). By connecting the raw material production areas with the consumption centers and linking both to major ports, DFC will positively impact overall growth rates and efficiency in the Indian economy. Delhi-Mumbai Industrial Corridor (DMIC) coming up along the western DFC will have a multiplier effect on industrial production, employment generation and development of the region as whole.
5. Rengali Irrigation Project (II)
This project provides new irrigation facilities in Brahmani river basin in Orissa and helps the institutionalization of irrigation association. Whereas agriculture has a significant importance for Indian economy, the project area, which is located in the middle of Orissa, largely depends on rainfall, which makes its productivity so vulnerable. Through the construction of irrigation facilities in the area, the project contributes to the increase of agricultural output and improvement of the farmers’ income.
6. Sikkim Biodiversity Conservation and Forest Management Project
This project aims to improve the management capacity of Kanchenjunga National Park and the other seven wildlife reservation area in Sikkim, as well as to help the income improvement activity of the local residents. Through this project, it is expected that the biodiversity in the area would be conserved and the living standard of the inhabitants be improved.