 |
Press Releases from the Embassy
Japan-India
Relations
Press Release No.4 |
New Delhi: March 27, 2009
|
JAPAN EXTENDS SOFT LOAN PACKAGE TO INDIA
UNDER THE SECOND BATCH OF FY2008
- - The Exchange of Notes for Rs. 7,159 crore
loan package was concluded today
|
|
|
1. The Government of Japan today agreed to extend a package of Official Development Assistance to India, in the form of soft loan assistance totaling 137,028 million yen (approximately Rs. 7,159 crore). The Exchange of Notes to formalize the agreement to this effect was concluded on March 27th at a ceremony held in the Ministry of Finance in New Delhi. The Notes were signed and exchanged between Mr. Masashi MIZUKAMI, Minister and Charge d'Affaires, Embassy of Japan in India and Mr. Kumar Sanjay Krishna, Joint Secretary, Ministry of Finance on behalf of their respective Governments.
Marking the largest-ever yen loan assistance to India
with the first batch of FY08 package
2. For the last five consecutive years since Financial Year 2003, India has been the top recipient of Japanese soft loan assistance. Since the Government of Japan has already committed the loan package in last October as the first batch, total amount of Japanese soft loan to India for this financial year is 236,047 million yen (approximately Rs. 12,332 crore). With the Yen loan commitment to India going up this year by five percent over the previous year’s commitment, the Japanese assistance has attained new peak again.
Even though Japan is facing difficult fiscal condition, the assistance to India has been increasing year by year. This reflects the growing Japan-India development partnership and the importance Japan attaches to the bilateral ties with India.
3. The loan package covers 4 large-scale projects in the areas of transportation and water supply. These concessional loans will be made available through the Japan International Cooperation Agency (JICA), at the interest rate of 1.2% per annum with the repayment period of 30 years including the grace period of 10 years. (See Enclosure 2 for outline of all the 4 projects.)
4. The main objectives of Japanese loan assistance to India are to support India’s efforts to establish infrastructure to boost and sustain economic growth, alleviate poverty and improve environmental issues. With the projects supported under the second batch of FY2008, the Japanese government expects to achieve these goals successfully.
Enclosures:
1. List of Projects
2. Outline of Projects
|
|
Enclosure - 1 |
|
|
JAPAN’S ODA LOANS TO INDIA FOR 2008-2009 (Second Batch)
LIST OF PROJECTS
|
| |
PROJECT |
AMOUNT
(in million yen) |
| 1 |
Delhi Mass Rapid Transport System Project (Phase 2) |
77,753 |
| 2 |
Guwahati Water Supply Project |
29,453 |
| 3 |
Hogenakkal Water Supply and Fluorosis Mitigation Project (Phase 2)
|
17,095 |
| 4 |
Kerala Water Supply Project (III) |
12,727 |
|
Total |
137,028 |
Enclosure - 2 |
Brief Outline of Yen-Loan Projects for FY 2008 (Second Batch)
1. Delhi Mass Rapid Transport System Project (Phase 2)
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. Guwahati Water Supply Project
This project aims to provide a safe and stable water supply service to the city of Guwahati, which is the biggest city in the north-east region with one million populations. The coverage of the water supply system is 30% and water is provided for only two to three hours per day. With this project, the water supply facilities will be established using Brahmaputra River as a water source. The project ultimately aims to improve the living environment of the inhabitants of Guwahati.
3. Hogenakkal Water Supply and Fluorosis Mitigation Project (Phase 2)
This project provides water supply facilities and alleviation of the health damage caused by fluorine in Krishnagiri and Dharmapuri region in Tamil Nadu. Those areas have been suffered from the less rainfall compared to other regions, although the water demand is surging owing to the increasing population. Furthermore, the groundwater is contaminated with fluorine. With this project, the adequate water supply will be provided using Kaveri River as a water source. In addition, educational activities as for fluorine contamination will be also conducted.
4.Kerala Water Supply Project (III)
This project aims to improve the water supply facilities in the five cities and villages in Kerala. The coverage of the water supply system in the cities of Kerala is insufficient and needs to be developed without delay. With growing population in the region, the establishment of a safe and stable water supply is an urgent issue. The project is expected to contribute to solve the agenda and improve the living environment of the inhabitants of those areas.
|
|
|
|