Exchange of Notes concerning Yen Loans for Mumbai Metro Line 3 Project (Tranche V)

 On July 5, Mr. SUZUKI Hiroshi, Ambassador of Japan to India, and Ms. Manisha Sinha, 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 84.261 billion yen for Mumbai Metro Line 3 Project (Tranche V).

1.Overview of the Yen Loan Project

This project aims to construct a mass rapid transit system in the Mumbai metropolitan area, the capital of the state of Maharashtra, with a total length of about 34 km. It will help to meet the increasing demand for transport, which will lead to regional economic development and urban environmental improvement, and thus climate change mitigation, by reducing traffic congestion and air pollution.

2.Terms and Conditions of the Loans

(1) Interest rate: 1.80% per annum (0.20% per annum for consulting services)
(2) Redemption period: 30 years (including a 10-year grace period)
(3) Procurement terms: General untied