Exchange of Notes concerning Yen Loans for Nine Projects in India
2024/2/20
On February 20, Mr. SUZUKI Hiroshi, Ambassador of Japan to India, and Mr. Vikas Sheel, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, exchanged notes in New Delhi, concerning the provision of yen loans of up to a total of 232.209 billion yen for the following nine projects.
(2) North East Road Network Connectivity Improvement Project (Phase 7) (loan provision of up to 15.561 billion yen)
This project is to provide a loan for the construction of National Highway 127B in the northeastern Indian state of Meghalaya connecting Phulbari to Goelagre. The project is expected to improve connectivity within and beyond the region and promote economic development within and beyond the region.
(3) Project for Promoting Start-up and Innovation in Telangana (loan provision of up to 23.697 billion yen) This project is to provide a loan for capacity building for entrepreneurs and micro, small and medium-sized enterprises, infrastructure development, commercialization support, and business and market creation in the state of Telangana in southern India, and also for strengthening the capacity of implementing agencies.
(4) Project for the Construction of Chennai Peripheral Ring Road (Phase 2) (loan provision of up to 49.847 billion yen) This project is to provide a loan for construction of the last remaining section of the Peripheral Ring Road in the Chennai metropolitan area in the state of Tamil Nadu. In addition to this section, Intelligent Transport Systems (ITS) will be introduced in the sections under construction or already constructed in the project. The introduction of ITS is expected to help meet the rapidly increasing traffic demand, alleviate traffic congestion, and strengthen the connection to the southern part of the state, thereby contributing to the economic development of the metropolitan area.
(5) Project for Promoting Sustainable Horticulture in Haryana（I） (loan provision of up to 16.215 billion yen) This is a project to provide a loan for supporting diversification of horticultural crops such as fruit trees and vegetables in the state of Haryana, and to develop facilities and strengthen capacity for value chain promotion, thereby promoting sustainable agriculture and increasing income of the target farmers by promoting sales of horticultural crops, thereby leading to socio-economic development of the state.
(6) Project for Climate Change Response and Ecosystem Services Enhancement in Rajasthan (loan provision of up to 26.133 billion yen) The project is to provide a loan for promoting climate change countermeasures (adaptation and mitigation measures) and improving ecosystem services in the state of Rajasthan, northwest India, through forest conservation, biodiversity conservation and restoration activities, improving the livelihood of residents engaged in these activities, and strengthening the organizational structure of the state forest department, thereby leading to sustainable socio-economic development in the state.
(7) Project for the Establishment of the Medical College Hospital at Nagaland Institute of Medical Sciences and Research, Kohima (loan provision of up to 10.008 billion yen)
This project is to provide a loan for establishing a tertiary health care service delivery system in Kohima, the state of Nagaland by building a medical college hospital and strengthening the medical human resource development system through clinical education, thereby promoting Universal Health Coverage (UHC) in the region.
(8) Project for the Improvement of Urban Water Supply System in Uttarakhand (loan provision of up to 16.211 billion yen)
This project is to provide a loan for the construction of water supply facilities in areas without access to adequate drinking water, including mountainous and remote areas. This project is expected to ensure the stable provision of water supply services in the region, thereby improving the living environment of the local people and helping them adapt to climate change.
(9) Dedicated Freight Corridor Project (Phase 1)（V) (loan provision of up to 34.537 billion yen)
This project is to provide a loan for the construction of Dedicated Freight Corridor (Western Corridor), the development of a fully automated signaling and communications system, and the introduction of high-power, high-speed locomotives and other equipment in the priority section between Rewari and Vadadra with the length of 915km. It is expected to help India meet the high growth demand for freight transport and improve the efficiency of its logistics network, thereby contributing to broad-based economic development, connectivity, and industrial competitiveness in the country. This is expected to lead to broad-based economic development in India, enhanced connectivity and industrial competitiveness.
(2) For project (2) in 1 above
(3) For project (3) in 1 above
(4) For project (4) in 1 above
(5) For project (5) in 1 above
(6) For project (6) in 1 above
(7) For project (7) in 1 above
(8) For project (8) in 1 above
(9) For project (9) in 1 above
1. Overview of the Yen Loan Projects
(1) North East Road Network Connectivity Improvement Project (Phase 3) (II) (loan provision of up to 34.537 billion yen)
This project is to provide a loan for the construction of a bridge (total length of 20 km) on the Brahmaputra River connecting Dhubri in Assam and Phulbari in Meghalaya in northeastern India. The project is expected to improve connectivity within and beyond the region and promote economic development within and beyond the region by eliminating the portion of National Highway 127B that is interrupted by the river. This is expected to promote economic development in and out of the region.(2) North East Road Network Connectivity Improvement Project (Phase 7) (loan provision of up to 15.561 billion yen)
This project is to provide a loan for the construction of National Highway 127B in the northeastern Indian state of Meghalaya connecting Phulbari to Goelagre. The project is expected to improve connectivity within and beyond the region and promote economic development within and beyond the region.
(3) Project for Promoting Start-up and Innovation in Telangana (loan provision of up to 23.697 billion yen) This project is to provide a loan for capacity building for entrepreneurs and micro, small and medium-sized enterprises, infrastructure development, commercialization support, and business and market creation in the state of Telangana in southern India, and also for strengthening the capacity of implementing agencies.
(4) Project for the Construction of Chennai Peripheral Ring Road (Phase 2) (loan provision of up to 49.847 billion yen) This project is to provide a loan for construction of the last remaining section of the Peripheral Ring Road in the Chennai metropolitan area in the state of Tamil Nadu. In addition to this section, Intelligent Transport Systems (ITS) will be introduced in the sections under construction or already constructed in the project. The introduction of ITS is expected to help meet the rapidly increasing traffic demand, alleviate traffic congestion, and strengthen the connection to the southern part of the state, thereby contributing to the economic development of the metropolitan area.
(5) Project for Promoting Sustainable Horticulture in Haryana（I） (loan provision of up to 16.215 billion yen) This is a project to provide a loan for supporting diversification of horticultural crops such as fruit trees and vegetables in the state of Haryana, and to develop facilities and strengthen capacity for value chain promotion, thereby promoting sustainable agriculture and increasing income of the target farmers by promoting sales of horticultural crops, thereby leading to socio-economic development of the state.
(6) Project for Climate Change Response and Ecosystem Services Enhancement in Rajasthan (loan provision of up to 26.133 billion yen) The project is to provide a loan for promoting climate change countermeasures (adaptation and mitigation measures) and improving ecosystem services in the state of Rajasthan, northwest India, through forest conservation, biodiversity conservation and restoration activities, improving the livelihood of residents engaged in these activities, and strengthening the organizational structure of the state forest department, thereby leading to sustainable socio-economic development in the state.
(7) Project for the Establishment of the Medical College Hospital at Nagaland Institute of Medical Sciences and Research, Kohima (loan provision of up to 10.008 billion yen)
This project is to provide a loan for establishing a tertiary health care service delivery system in Kohima, the state of Nagaland by building a medical college hospital and strengthening the medical human resource development system through clinical education, thereby promoting Universal Health Coverage (UHC) in the region.
(8) Project for the Improvement of Urban Water Supply System in Uttarakhand (loan provision of up to 16.211 billion yen)
This project is to provide a loan for the construction of water supply facilities in areas without access to adequate drinking water, including mountainous and remote areas. This project is expected to ensure the stable provision of water supply services in the region, thereby improving the living environment of the local people and helping them adapt to climate change.
(9) Dedicated Freight Corridor Project (Phase 1)（V) (loan provision of up to 34.537 billion yen)
This project is to provide a loan for the construction of Dedicated Freight Corridor (Western Corridor), the development of a fully automated signaling and communications system, and the introduction of high-power, high-speed locomotives and other equipment in the priority section between Rewari and Vadadra with the length of 915km. It is expected to help India meet the high growth demand for freight transport and improve the efficiency of its logistics network, thereby contributing to broad-based economic development, connectivity, and industrial competitiveness in the country. This is expected to lead to broad-based economic development in India, enhanced connectivity and industrial competitiveness.
2. Terms and Conditions of the Loans
(1) For project (1) in 1 above- Interest rate: 1.80% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(2) For project (2) in 1 above
- Interest rate: 1.80% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(3) For project (3) in 1 above
- Interest rate: 1.80% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(4) For project (4) in 1 above
- Interest rate: 1.80% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(5) For project (5) in 1 above
- Interest rate: 1.45% per annum (0.20% per annum for consulting services)
- Redemption period: 20 years (including a 6-year grace period)
- Procurement terms: General untied
(6) For project (6) in 1 above
- Interest rate: 1.60% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(7) For project (7) in 1 above
- Interest rate: 1.60% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(8) For project (8) in 1 above
- Interest rate: 1.80% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: General untied
(9) For project (9) in 1 above
- Interest rate: 0.30% per annum (0.20% per annum for consulting services)
- Redemption period: 30 years (including a 10-year grace period)
- Procurement terms: Tied