On February 20, 2024, the Japan International Cooperation Agency (JICA) of Japan signed loan agreements with the Government of India in Delhi to provide Japanese Official Development Assistance (ODA) loans of up to Japanese Yen (JPY) 232.209 billion for 9 projects across various sectors in India.
- The initiative aims to strengthen infrastructure and developmental projects in India.
Key People: To formalise this commitment, the Notes were exchanged between Vikas Sheel, Additional Secretary of the Department of Economic Affairs, Ministry of Finance, Government of India; and Mr. Suzuki Hiroshi, Ambassador of Japan to India.
Points to Note:
i.Japan started an ODA with India in 1958 in the form of a Yen Loan.
ii.JICA is a governmental agency that coordinates ODA for the Government of Japan.
ii.As an implementing agency of ODA, JICA aims to contribute to the promotion of international development cooperation.
- It also address the global agenda by supporting the socioeconomic development, recovery and economic stability of developing countries.
Loan Distribution:
1.Project for Promoting Start-up and Innovation in Telangana:
Loan amount: JPY 23.7 697 billion
Objective: Foster entrepreneurship, especially among women and rural entrepreneurs, through capacity building, infrastructure support, etc.
- Focus on creating job opportunities and promote sustainable industrial development in Telangana.
Executing Agency: Information Technology, Electronics, and Communications Department (ITE&CD), Government of Telangana.
2.Project for the Construction of Chennai Peripheral Ring Road (Phase 2):
Loan amount: JPY 49.85 billion
Objective: Addressing the growing road traffic demands in Chennai (Tamil Nadu (TN)), this project aims to alleviate congestion and enhance connections to the southern part of TN.
- Focus on constructing segment 5 of the Peripheral Ring Road and introducing Intelligent Transportation Systems (ITS) in segments 2 to 5.
Executing Agency: Highways and Minor Ports Department, Government of Tamil Nadu
3.North East Road Network Connectivity Improvement Project (Phase 7):
Loan amount: JPY 15.56 billion
Objective: Enhance connectivity in the North Eastern Region (NER) of India and neighbouring countries.
- Focus on National Highway 127B (Phulbari – Goeragre section) in Meghalaya.
Executing Agency: Meghalaya Public Works Department.
4.North East Road Network Connectivity Improvement Project (Phase 3) (Tranche II):
Loan amount: JPY 34.54 billion
Objective: Improve connectivity in the NER through the construction of the bridge between Dhubri and Phulbari.
Executing Agency: National Highway Infrastructure Development Corporation Limited (NHIDCL).
5.Project for the Improvement of Urban Water Supply System in Uttarakhand:
Loan amount: JPY 16.21 billion
Objective: Ensure stable water supply services to urban towns including mountainous/remote areas in Uttarakhand.
- Focus on improving water supply facilities.
Executing Agency: Department of Drinking Water and Sanitation, Government of Uttarakhand.
6.Project for Promoting Sustainable Horticulture in Haryana (Tranche I):
Loan amount: JPY 16.21 billion
Objective: Promote sustainable horticulture and enhance farmers’ income through crop diversification and infrastructure development.
Executing Agency: Department of Horticulture, Government of Haryana.
7.Project for Climate Change Response and Ecosystem Services Enhancement in Rajasthan:
Loan amount: JPY 26.13 billion
Objective: Respond to climate change and enhance ecosystem services through afforestation, biodiversity conservation, livelihood improvement activities, etc.
Executing Agency: Rajasthan Forest Department, Government of Rajasthan.
8.Project for the Establishment of the Medical College Hospital at Nagaland Institute of Medical Sciences and Research, Kohima:
Loan amount: JPY 10 billion
Objective: Establish a tertiary-level medical service delivery system in Nagaland by developing a Medical College Hospital.
- Contributes to the promotion of Universal Health Coverage (UHC).
Executing Agency: Department of Health and Family Welfare, Nagaland.
9.Dedicated Freight Corridor Project (Phase1) (Tranche V):
Loan amount: JPY 40 billion
Objective: Address the increasing demand for freight transport in India through the construction of a dedicated freight railway system.
Executing Agency: Ministry of Railways and Dedicated Freight Corridor Corporation India Limited
Note:
i.For this project, Special Terms for Economic Partnership (STEP) will apply to the Japanese ODA loan.
ii.Japanese technology will be used for components being constructed under the project such as railroad tracks and equipment used for signaling and communications.
Recent related News:
In November 2023, the Indian Government signed a USD 400 million policy-based loan agreement with the Asian Development Bank (ADB) to support its sub-program 2 of the Sustainable Urban Development and Service Delivery Programme.
About Japan International Cooperation Agency (JICA):
The current organisation was established in 2003 and replaced a semi-governmental organisation formed in 1974 under the jurisdiction of the Ministry of Foreign Affairs.
President– Dr. TANAKA Akihiko
Headquarters– Tokyo, Japan
