Japan clears Rs7,158-crore ODA loan to India
27 Mar 2009
Japan today cleared the second tranche of a 137.028 billion yen (Rs7158.32 crore) ODA loan package to India from Japan's International Cooperation Agency for FY 2008, making India recipient of the highest ODA loan from Japan.
The funds will be used to finance four ongoing projects in various parts of the country.
The funds will be used for the Delhi Mass Rapid Transport System Project (Phase 2) (IV), for which the Japanese government has so far committed a total of 341.087 billion yen (including the current tranche), in two phases.
The first phase was completed and the second phase is going on. The project aims to cope with the increase of traffic demand in Delhi by extending the mass rapid transportation system, thereby promoting regional economic development and improving urban environment, through mitigation of traffic jams and decrease of pollution caused by increasing motor vehicles.
Part of the loan will be used for the Guhawati Water Supply Project, which envisages building up of waterworks facilities in the South Central and North Zones of Guwahati city, thereby achieving potable water supply with 100 per cent coverage of the citizens within the above area and lead to upgrading citizens living standard.
The government of Japan has committed 22.387 billion yen, under a loan agreement signed on 10 March 2008, for the Hogenakkal Water Supply and Fluorosis Mitigation Project. The current phase (Phase 2) of the project covers Hosur area.
The project when completed will provide safe and reliable water supply in Dharmapuri and Krishnagiri in Tamil Nadu and provide fluorosis mitigation support in Dharmapuri and Krishnagiri districts, thereby improving living conditions of the residents including the poor in the concerned areas.
Another 664.85 million yen out of a committed 57.501 billion yen will go for the Kerala Water Supply Project (III), which is being implemented with Japanese loan since 1997. So far the government of Japan has committed 57.501 billion yen for the project in three tranches (including the current tranche).
The funds will be used to augment and rehabilitate water supply system of two urban regions, namely Thiruvananthapuram and Kozhikode, and to construct water supply system of three rural regions, namely Pattuvam, Cherthala, and Meenad, including their adjoining villages, in Kerala to meet their water demand.
With today's Exchange of Notes the cumulative commitment of ODA from Japan has reached 2898.59 billion yen (Rs1,13,209.77 crore). In the first batch of FY2008 the government of Japan had committed 99.019 billion yen (Rs4,555 crore) for four projects, namely Chennai Metro Project, Hyderabad Outer Ring Road Project (Phase 2), capacity development for forest management and personnel training project and micro, small and medium enterprises energy saving project.
With the present commitment of 137.028 billion yen (Rs7,158.32 crore) in the second batch of FY 2008, total ODA loan commitment from Japan in FY 2008 comes to 236.047 billion yen(Rs11,713.32 crore). This is a 4.84 per cent increase from last year's ODA commitment of 225.13 billion yen.
This is also the highest ever ODA loan commitment by Japan to India and India continues to be the highest recipient of ODA from Japan.
India and Japan have had a long and fruitful history of bilateral development cooperation since 1958. In the last few years relations between India and Japan have steadily progressed based on India-Japan Global Partnership.
