Japan commits Rs 14,250 crore loans to India for infra projects

Japan on Thursday committed loans worth 242.2 billion yen (about Rs 14,251 crore) for five infrastructure development projects in India, including the Dedicated Freight Corridor Project.

The loans, under official development assistance (ODA), have been committed for various projects, including Transmission System Strengthening Project in Madhya Pradesh (JPY 15.45 billion); Odisha Integrated Sanitation Improvement Project (II) (JPY 25.7 billion) and Dedicated Freight Corridor Project (Phase 1) (III) (JPY 103.6 billion or Rs 6,170 crore).

Additionally, North East Road Network Connectivity Improvement Project will get JPY 67.1 billion and Jharkhand Horticulture Intensification by Micro Drip Irrigation Project will get JPY 4.65 billion.

The loans will be extended through Japan International Cooperation Agency (JICA).

ODA is broadly divided into bilateral aid, in which assistance is given directly to developing countries, and multilateral aid, in which it is provided through international organisations.

JICA provides bilateral aid in the form of technical cooperation, Japanese ODA loans and grant aid.

The notes were exchanged between S Selvakumar, joint secretary, Department of Economic Affairs, Government of India and Kenji Hiramatsu, ambassador of Japan to India, a finance ministry statement said.

Japan has committed a total of JPY 390 billion in the current financial year, ending on Thursday, which is the highest amount committed in a year, it said.

India and Japan have had mutually beneficial economic development cooperation since 1958.

"In the last few years, the economic cooperation between India and Japan has strengthened and grown into strategic partnership. With general political consensus and popular support for the greater cooperation between Indian and Japan the partnership is poised for a great future," it said.