Charting the rise and spread of Japanese funding in India

JICA is currently associated with over 70 infrastructure projects

For over 18 years, JICA, the Japanese government’s lending agency, has helped build the network of Delhi Metro Rail Corporation (DMRC), India’s largest Mass Rapid Transit System (MRTS) through concessional loans worth JPY 652 billion (Rs 38,300 crore). However, with the agency now pressing for step loans to continue funding the next phase of DMRC (meaning, compulsory purchase of a part of the project from the Japanese), a condition not acceptable to the government, JICA’s lending association with DMRC is becoming increasingly doubtful. And this comes at a time DMRC is going for major network expansion in the National Capital Region apart from building metros in multiple other cities.

Business Standard takes a look at the rise and spread of Japanese funding in India, DMRC in particular, to understand the role played by JICA.  

• JICA has been facilitating development projects in India since 1958. Currently, over 70 projects related to road and metro rail networks, power generation and transmission, agricultural productivity, forest resource management, water supply and sewerage networks and education are underway, facilitated through concessional loans, technical cooperation and grants from JICA.

• Apart from the Rs 38,000 crore assistance to DMRC for building metro tracks and procurement of rolling stock, other infrastructure development projects being facilitated by concessional loans from JICA include the Delhi Mumbai Industrial Corridor, Western Dedicated Freight Corridor and the Arterial Road Network in Hyderabad.

• The Arterial Road Network in Hyderabad deploys Intelligent Transport System (ITS) for efficient management of the highway and toll collection. JICA has also completed a study for deployment of ITS in Hyderabad city to increase efficiency of road use, reduce cost of traffic management and reduce travel time, thereby increasing productivity. ITS entails deployment of Automatic Traffic Counter-cum-Classifiers, CCTVs, Variable Messaging System and Flood Sensors, to provide real-time traffic information to motorists and traffic police.

Project	Date of Loan Agreement	Loan Amount (Mn JPY)	Interest Rate (%)	Repayment Period (years)
Delhi Metro
Delhi MRTS	Feb-97	14,760	2.3	30
Delhi MRTS II	Mar-01	6,732	1.8	30
Delhi MRTS III	Feb-02	28,659	1.8	30
Delhi MRTS IV	Mar-03	34,012	1.8	30
Delhi MRTS V	Mar-04	59,296	1.3	30
Delhi MRTS VI	Mar-05	19,292	1.3	30
Total Phase I		162,751
Delhi MRTS Phase 2 (I)	Mar-06	14,900	1.3	30
Delhi MRTS Phase 2 (II)	Mar-07	13,583	1.3	30
Delhi MRTS Phase 2 (III)	Mar-08	72,100	1.2	30
Delhi MRTS Phase 2 (IV)	Mar-09	77,753	1.2	30
Delhi MRTS Phase 2 (V)	Mar-09	33,640	1.4	30
Total Phase 2		211,976
Delhi MRTS Phase 3 (I)	Mar-12	127,917	1.4	30
Delhi MRTS Phase 3 (II)	Mar-14	148,887	1.4	30
Total Phase 3		276,804
GRAND TOTAL		651,531
Bangalore Metro
Bangalore Metro Project	Mar-06	44,704	1.3	30
Bangalore Metro Project II	Jun-11	19,832	1.4	30
TOTAL		64,536
Chennai Metro
Chennai Metro Project	Nov-08	21,751	1.2	30
Chennai Metro Project II	Mar-10	59,851	1.4	30
Chennai Metro Project III	Mar-13	48,691	1.4	30
TOTAL		130,293
Kolkata Metro
Kolkata East-West Metro	Mar-08	6,437	1.2	30
Kolkata East-West Metro II	Mar-10	23,402	1.4	30
TOTAL		29,839
Mumbai Metro
Mumbai Metro Line 3	Sep-13	71,000	1.4	30
Source: JICA