On 31st March 2022, Japan International Cooperation Agency (JICA) signed Japanese ODA (Official Development Assistance) Loan Agreements with the Government of India in Delhi, to provide Japanese ODA loans of up to a total of 312.258 billion Yen for 7 projects.
- This contributes to strengthening the Japan-India partnership and marks the 70th anniversary of the establishment of diplomatic relations by supporting the climate change response and building a resilient society.
Signatories:
The loan agreements were signed between Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India(GoI) and Saito Mitsunori, Chief Representative of JICA India.
7 Projects & Their objectives:
i.Dedicated Freight Corridor Project (Phase 2) (III)
- Loan amount: 116.52 billion yen
- Objective: To cope with the increase in demand for freight transport in India by constructing a new dedicated freight railway system and promote comprehensive regional economic development along the freight corridor.
Key Points:
Under this project a new 550 km freight line from Dadri to Rewari and Vadodara to Mumbai connecting the major cities in Gujarat and Maharashtra.
ii.Chennai Metro Project (Phase 2) (II)
- Loan amount: 73 billion yen
- Objective: To cope with the increase in traffic demand in the Chennai Metropolitan Area by expanding the mass rapid transit system and promote regional economic development and improve the urban environment, through relief of traffic congestion and decrease of pollution caused by an increase in motor vehicles.
Key Points:
The project envisages developing an additional Metro Rail System network of ~ 54 kilometres which includes Corridor 3 from Madhavaram Milk Colony to Sholinganallur and Corridor 5 from Madhavaram Milk Colony to CMBT.
iii.Bengaluru Water Supply and Sewerage Project (Phase 3) (II)
- Loan amount: 37.068 billion yen
- Objective: To provide safe and stable water supply and sewerage services by carrying out the construction of water supply facilities and sewage facilities.
iv.North East Road Network Connectivity Improvement Project (Phase 6)
- Loan amount: 23.129 billion yen
- Objective: to improve connectivity in the North Eastern Region of India as well as connectivity with other parts of India and Bangladesh through establishing and improving National Highway(NH) 208 (Khowai-Sabroom section) in Tripura.
Key Points:
Under this project, the targeted section will undertake widening and rehabilitation of 4 lands (133.7 km) in total including the construction of 7 new bypasses (21.375 km), rehabilitation of 2 major bridges and 58 minor bridges.
JICA has extended 161,530 million yen over phase 1 to phase 5 of the North East Road Connectivity Improvement project.
v.Tamil Nadu Biodiversity Conservation and Greening Project for Climate Change Response
- Loan amount: 10.535 billion yen
- Objective: To mitigate and adapt to climate change and improve the ecosystem by undertaking biodiversity conservation, human versus wildlife conflict mitigation measures, promoting supply chain development, livelihood improvement activities, and management capacity development.
vi.Assam Health System Strengthening Project
- Loan amount: 45.605 billion yen
- Objective: to improve the quality of medical services for the residents of the target areas in the state of Assam.
vii.Uttarakhand Integrated Horticulture Development Project
- Loan amount: 6.401 billion yen
- Objective: to promote profitable horticulture and improve farmers’ income by infrastructure development and capacity development for the production, processing, and marketing of horticulture crops.
Overview of the 7 projects:
| Project | Amount (million yen) | Executing Agency | Repayment period (years) | Completion of project |
|---|---|---|---|---|
| Dedicated Freight Corridor Project (Phase 2) (III) | 116,520 | Ministry of Railways | 40 | May 2025 |
| Chennai Metro Project(Phase 2)(II) | 73,000 | Chennai Metro Rail Limited (CMRL) | 40 | June 2027 |
| Bengaluru Water Supply and Sewerage Project (Phase 3) (II) | 37,068 | Bangalore Water Supply and Sewerage Board (BWSSB) | 30 | December 2025 |
| North East Road Network Connectivity Improvement Project (Phase 6) | 23,129 | National Highways and Infrastructure Development Corporation Limited(NHIDCL) | 30 | March 2026 |
| Tamil Nadu Biodiversity Conservation and Greening Project for Climate Change Response | 10,535 | Tamil Nadu Forest Department, Government of Tamil Nadu | 30 | July 2030 |
| Assam Health System Strengthening Project | 45,605 | Health and Family Welfare Department (HFWD), Government of Assam | 30 | April 2027 |
| Uttarakhand Integrated Horticulture Development Project | 6,401 | Department of Horticulture and Food Processing (DHFP), Government of Uttarakhand | 30 | December 2028 |
Recent Related News:
i.The Government of India (GoI), and the World Bank signed loan agreements of USD 115 million to implement the “Rejuvenating Watersheds for Agricultural Resilience through Innovative Development” (REWARD) Project in the states of Karnataka and Odisha with the support of the respective governments.
ii.The Government of India (GoI) has signed a US $250 million (Rs 1,855 crore) loan agreement with the World Bank (WB) for the Second Dam Rehabilitation and Improvement Project (DRIP-2) Phase II, the world’s largest dam management program. The agreement is the 1st phase of ‘DRIP Phase II and Phase III’.
About Japan International Cooperation Agency (JICA):
President– Kitaoka Shinichi
Headquarters– Tokyo, Japan
Established in 1974