With this, JICA
has so far extended concessional official development assistance loans of about Rs 26,000 crore for development of the Western DFC Project. The loan
is offered at a rate of 0.1 per cent for project activities with 30 years of repayment period, including 10 years of grace period. JICA
is currently supporting the construction of civil and track works, electrification, including signalling and telecommunication system for the WDFC between Delhi and Mumbai.
Takema Sakamoto, chief representative, JICA
India office said, “JICA
is fully committed towards the construction and completion of this initial logistical infrastructure of the DMIC. The DFC project will enhance freight capacity, making it a revolution for the industrial corridor. JICA
will continue to play an important role in the development of WDFC and will provide necessary assistance in the near future as well.”
The project will focus on constructing approximately 1,500-kilometer track of the Western Corridor between Delhi and Mumbai, connecting major cities in the states of Maharashtra, Gujarat, Rajasthan and Haryana, as well as introducing new electric locomotives capable of high-speed and high-capacity transportation.
also signed another agreement
to provide a loan
of Rs 500 crore for ‘upgradation of environmental management for ship recycling in Gujarat’. “The ODA loan's conditions are very concessional, i.e. 1.2 per cent interest rate for project activities and 0.01 per cent interest rate for consulting services, and 30 years of repayment period, including 10 years of grace period,” it said in a statement on Friday. Since 1982-83, JICA
has provided ODA loans of approximately Rs 115,000 crore for the development of transport sector in India.
“JICA’s cooperation will enhance safety, environmental and health aspects for approximately 10,000 labourers working at the shipyard, and will provide major improvements in the methods adopted for ship recycling. JICA’s collaboration will modernise the ship recycling process by adoption of advanced operational process in consonance with international standards,” Sakamoto added. This comes on the back of the inauguration of the construction of Mumbai-Ahmedabad railway line, which India is setting up with Japanese aid.