Japan International Co-operation Agency (JICA), a funding agency, has signed a loan agreement with the Government of India, to provide soft loans up to a total of ¥199,035 million which is about Rs 11,400 crore.
These are long-term loans of 30-40 yearswith low interest rates. From the total loan, 68 per cent will be used to fund the construction of the western arm of the dedicated rail freight corridor, 24 per cent for the Metro project in Chennai, and remaining for a piped water project in Purulia district in West Bengal.
According to a JICA release, ¥136,119 million has been allocated for the construction of dedicated rail freight corridor between Delhi and Mumbai.
The loan, carrying a concessional rate of 0.2 per cent, is to be repaid over a period of 40 years with 10 years’ grace period.
The project will be executed by the Ministry of Railways and Dedicated Freight Corridor Corporation of India.
For Chennai’s Metro rail construction, ¥48,691 million is being provided.
The loan carries a interest rate of 1.4 per cent and is to be repaid in 30 years with grace period of 10 years. The third project, for which a ¥14,225 million will be extended, is the piped water supply project in Purulia district in West Bengal.
Water supply facilities will be constructed to provide safe and adequate drinking water to the people of the area.
The loan carrying a interest rate of 1.4 per cent is to be repaid in 30 years with a grace period of 10 years.
The project will be executed by Public Health Engineering Department, Government of West Bengal