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.