JICA signs agreement with Centre to provide loan of Rs 500 Cr

Japan International Cooperation Agency (JICA) has signed an agreement with the Government of India to provide loan assistance of 8,082 million Japanese Yen (approximately Rs 500 crore) for installation of intelligent transport systems in the city.

The objective of the project under the agreement is to construct an efficient traffic system to meet increasing traffic demands in Chennai Metropolitan area by installing Intelligent Transport Systems and to mitigate traffic congestion and economic growth, a company statement said.

The project, once operational would improve travel journey and reduced queues at vital intersections in the city.

The Official Development Assistance (ODA) has been offered at interest rate of 1.5 per cent for the project activities, 0.01 per cent for consulting service and 30 years of repayment period.

"... JICA has been proactively supporting Chennai Metro's development through ODA loans. We are taking another step forward by introducing this new project to enhance mobility." JICA India Office, Chief Representative, Takema Sakamoto said.

"The project would optimise the way traffic lights work, reducing long queues at city's main intersections", he said, adding, mitigating traffic congestion would lead to effective utilisation of road infrastructure.

The Official Development Assistant loan agreement was signed between Ambassador of India to Japan, Sujan R Chinoy and JICA, Senior Vice-President, Junichi Yamada at the likura House of the Ministry of Foreign Affairs, Tokyo.

The Chennai Smart City Ltd is the executing agency of the project.

The project would be implemented within the existing road network in Chennai and would not affect the social environment, it added.