Post-tsunami, Japan resumes JICA aid to India
17 Jun 2011
The Japan International Cooperation Agency (JICA) on Thursday signed a pending agreement with India to provide Rs7,361 crore as long-term soft loan for 2010-11. The loan will cover six development projects in the key infrastructure areas of power, transportation, forestation and energy.
Though the agency had planned to sign the agreement in end-March, it was delayed due to the 11 March earthquake-tsunami calamity in Japan.
"It took us little time to recover, but now we're ready to carry on with our assistance. Out of the total target of Rs12,000-crore soft loan, India has the maximum share," JICA's India representative Yuichiro Sano said in New Delhi.
The six projects which have been approved for JICA's soft loan include phase II of the Bangalore metro rail project, a high-voltage distribution system venture in Andhra Pradesh, modernization of transmission system in Madhya Pradesh, and development of new and renewable energy projects in the country.
Needless to say, these soft loans are contingent on all the major contracts going to Japanese companies.
Small Industries Development Bank of India has entered into a loan agreement of 30 billion yen (about Rs 1,670 crore) with JICA for financing energy saving projects in micro, small and medium enterprises (MSMEs), SIDBI said on Thursday.