Exchange of Notes concerning Yen Loans and Grant Aid to India
2021/3/26
1．On March 26, Mr. SUZUKI Satoshi, Ambassador of Japan to India, and Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged Notes in New Delhi, concerning the provision of yen loans and of a grant aid, which include following projects.
2．Overview of the main loan projects
(1) Bengaluru Metro Rail Project (Phase 2) (loan up to 52.036 billion yen)
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),
(2) Delhi Mass Rapid Transport System Project (Phase 4) (I) (loan up to 119.978 billion yen)
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),
(3) Himachal Pradesh Crop Diversification Promotion Project (Phase 2) (loan up to 11.302 billion yen)
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.
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.
(4) Rajasthan Rural Water Supply and Fluorosis Mitigation Project (Phase 2) (loan up to 45.816 billion yen)
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.
3. Terms and Conditions of the Loans
(1) For project (1) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(2) For project (2) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(3) For project (3) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(4) For project (4) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
4. Overview of the grant project
“The Project for Improvement of Power Supply in Andaman and Nicobar Islands (grant amount of 4.016 billion yen)”
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.
Ambassador Suzuki Additional Secretary C.S. Mohapatra
2．Overview of the main loan projects
(1) Bengaluru Metro Rail Project (Phase 2) (loan up to 52.036 billion yen)
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 number of train services will increase to 150 and daily passenger distance will increase to 3.1 million passenger kilometers in Line 2A,
- the number of train services will increase to 233 and daily passenger distance will increase to 6.9 million passenger kilometers in Line 2B, and
- the number of train services will increase to 125 and daily passenger distance will increase to 4.7 million passenger kilometers in Line 6.
(2) Delhi Mass Rapid Transport System Project (Phase 4) (I) (loan up to 119.978 billion yen)
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 number of train services will increase to 104 and daily passenger distance will increase to 2.58 million passenger kilometers in the extended part of Line 7,
- the number of train services will increase to 187 and daily passenger distance will increase to 7.3 million passenger kilometers in the extended part of Line 8, and
- the number of train services will increase to 67 and daily passenger distance will increase to 3.59 million passenger kilometers in Line 10.
(3) Himachal Pradesh Crop Diversification Promotion Project (Phase 2) (loan up to 11.302 billion yen)
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.
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.
(4) Rajasthan Rural Water Supply and Fluorosis Mitigation Project (Phase 2) (loan up to 45.816 billion yen)
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.
3. Terms and Conditions of the Loans
(1) For project (1) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(2) For project (2) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(3) For project (3) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
(4) For project (4) in 2. above
i. Interest rate: 1.15% per annum (0.01% per annum for consulting services)
ii. Redemption period: 30 years (including a 10-year grace period)
iii. Procurement terms: General untied
4. Overview of the grant project
“The Project for Improvement of Power Supply in Andaman and Nicobar Islands (grant amount of 4.016 billion yen)”
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.
Ambassador Suzuki Additional Secretary C.S. Mohapatra