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New Delhi, March 29, 2010
Japan today agreed to provide an Official DevelopmentAssistance (ODA) package to India in the form of soft loans amounting to more than Rs 10,500 crore (Yen 215.611 billion) for the financial year 2009.
An official press release said the notes in this regard were exchanged between Dr Alok Sheel, Joint Secretary, Department of Economic Affairs, and Mr Hideki Domichi, Japanese Ambassador to India here this morning.
The release said the loan would fund six major projects, including Rs 4422.84 crore (Y 90.62 billion) for Phase I of the Dedicated Freight Corridor (DFC) project. The total cost of the project appraised by the Japan International Cooperation Agency (JICA) is Y 498.565 billion and the Government of Japan has committed Y 92.868 billion for Phase I.
The project is aimed at coping with the increasing demand for freight transport in India by constructing a new dedicated freight railway system, thereby promoting comprehensive regional economic development along the freight corridor, through improvement and modernization of inter-modal logistic system handling considerable freight traffic and poised for massive growth.
The package also includes a loan of R 2932.70 crore (Y 58.851 billion) for the Chennai Metro Project, which has been appraised by JICA at Y 378.138 billion. The Government of Japan has committed Y 21.751 billion for Phase I and Y 59.851 billion for Phase II of the project.
The project is designed to cope with the increasing traffic in Chennai metropolitan area by extending the mass rapid transportation system. It is expected to promote regional economic development and improve the urban environment through mitigation of traffic jamps and decrease of pollution caused by the increasing number of motor vehicles.
The assistance package includes a loan of Rs 1648.36 crore (Y 33.640 billion) for the Delhi Mass Rapid Transport System Project (Phase II). The total cost of Phase I of the project was appraised by JICA at Y 274.612 billion and the Japanese government has committed Y 162.751 billion. The total cost of Phase II of the project has been appraised at Y 388.670 billion and the Japanese Government has committed Y 211.976 billion. The first phase has been completed and the second phase is being implemented.
There is a Rs 1146.75 crore (Y 23.403 billion) loan for the Kolkata East-West Project Phase II. The total cost of the project has been appraised by JICA at Y 140.199 billion. The Japanese government has committed Y 6.437 billion for Phase I and Y 23.403 billion for Phase II.
The package also includes Rs 263.82 crore for the Sikkim Biodiversity Conservation and Forest Management Project and Rs 150.53 crore for the Rengali Irrigation Project.
With today's Exchange of Notes, the cumulative commitment of ODA from Japan has reached Rs 155840 crore (Yen 3116.81 billion). India continues to be the highest recipient of ODA from Japan.