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Japanese loan package of Rs.7,074 crore for Indian projects

Tuesday, 11 Mar 2008
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On 10 March 2008, Japan approved a package of about Rs.7,074 crore in the form of soft loan assistance for projects in the areas of power, transportation, water supply and environment in India.

These concessional loans will be made available through the Japan Bank for International Cooperation, generally at 1.2 per cent per annum, and will have a repayment period of 30 years, including grace period of 10 years.

The package covers seven large projects, including Delhi Mass Rapid Transport System Project (about Rs.2,864 crore), Haryana Transmission System Project (about Rs.830 crore), Uttar Pradesh Participatory Forest Management & Poverty Alleviation Project (about Rs.530 crore), Tamil Nadu Urban Infrastructure project (about Rs.339 crore) and Kolkata East-West Metro Project (about Rs.255 crore).

Japan has already committed Rs.1,345 crore loan package in August 2007 to India and with the proposed fresh assistance, the total soft loan to the country this financial year is Rs.8,582 crore.

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