On March 26, 2021, Japan finalised loans and a grant totalling around 232.86 (~233) Billion Japanese Yen (~ INR 15433 Crores) for development of several key infrastructure projects in India. The funds will be provided through the Japan International Cooperation Agency (JICA).
- The notes on Loan & grant were exchanged between Suzuki Satoshi, Ambassador of Japan to India & Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India.
Overview of Projects & Grants
|Bengaluru Metro Rail Project (Phase 2)||52.036 Billion Yen|
(~INR 3445 crores)
|Delhi Mass Rapid Transport System Project (Phase 4) (I)||119.978 Billion Yen|
(~INR 8000 crores)
|Himachal Pradesh Crop Diversification Promotion Project (Phase 2)||11.302 Billion Yen|
(~INR 748 Crores)
|Rajasthan Rural Water Supply and Fluorosis Mitigation Project (Phase 2)||45.816 Billion Yen|
(~INR 3036 Crores)
|Project for Improvement of Power Supply in Andaman and Nicobar Islands||4.016 Billion Yen|
(~INR 266 Crores)
JICA extends INR 3, 717 Crore Loan for Bangalore Metro Phase-II
JICA has extended 52.036 Billion Yen (~INR 3, 446 Crore) for development of Phase 2 of Bangalore Metro Rail Corporation Limited (BMRCL) in Bengaluru.
- The Phase 2 will be 80 Kms long and will involve construction of 3 metro lines (Line 2A, Line 2B & Line R6).
- It is expected to strengthen the industrial competitiveness of the city by easing traffic congestion & reducing traffic hazard.
Andaman & Nicobar Infrastructure Project
The grant of 4.01 Billion Yen (~INR 265 Crores) is Japan’s 1st ever Official Development Assistance (ODA) to a project in the Andaman & Nicobar Islands.
- The aid will be used to procure 15 MWh batteries as well as power system stabilizers for effective utilization of electricity generated by solar PV in South Andaman, including Port Blair.
- It will contribute to enhancement of industrial competitiveness in South Andaman, achieve sustainable economic growth and mitigate climate change impacts in South Andaman.
- The projects will contribute to India’s target of achieving 100% renewable energy in the Andaman and Nicobar Islands & also Japan’s ‘Green Growth Strategy’.
Funds for Delhi Metro
- JICA has extended 119.978 Billion Yen (~INR 8000 crores) for the Phase-4 of Delhi Metro Project.
- Under the project, three metro lines (Ext. of Line 7 & Line 8 & construction of Line 6) of Delhi Metro, totaling to 65 Km will be undertaken.
- Since 1997, JICA has cumulatively extended 705.2016 Million Japanese Yen (~ INR 47, 000 Crore) for the Delhi Metro Project.
Phase-2 of Himachal Pradesh Crop Diversification
- A loan of ₹807 crore was extended for crop diversification in Himachal Pradesh.
- It aims to promote agricultural productivity and sustainable crop diversification to higher value crops and improve farmers’ income.
Phase-2 of Rajasthan rural water supply
- ₹3,272 crore in loans to rural water supply with a focus on mitigating fluorosis in Rajasthan’s Jhunjhunu and Barmer districts.
- It aims to provide sustainable and safe water supply by construction water treatment plants in Jhunjhunu and Barmers districts in Rajasthan.
India – Top recipient of Japan’s Financial Aid
According to the International Council for Research on International Economic Relations (ICRIER), India has been the top recipient of Japan’s financial aid under ODA since 2003, surpassing China.
- Between 2010 and 2020, Japan has committed a total of JPY 3.1 Trillion for infrastructure in India including connectivity projects in India’s Northeastern region.
- JICA has provided loan amounts of around 1.3 Trillion Japanese Yen (~ INR 87, 000 Crore) for India’s Metro Projects in Delhi, Bengaluru, Chennai, Kolkata, Mumbai & Ahmedabad.
- ICRIER’s Chairman Pramod Bhasin stated that works are on to set up a Japan centre at ICRIER for developing ties between the two countries & improving the investment infrastructure.
Recent Related News:
i.On August 31, 2020 Japan extended an Emergency Support Loan of up to 50 Billion Japanese Yen (Approximately Rs 3, 500 Crore) to support India’s response to the COVID-19 crisis.
ii.On October 28, 2020, NTPC Ltd signed foreign currency loan agreement with Japan Bank for International Cooperation (JBIC) for JPY (Japanese Yen) 50 billion under its Global Action for Reconciling Economic growth and Environment preservation (GREEN) initiative.
Currency– Japanese yen
Prime Minister– Yoshihide Suga