The Hindu Business Line : Japan extends Rs 5,910-cr ODA loan package

For the past three years, India has been the top recipient of the Japanese soft loan assistance. Delhi, Bangalore metro projects qualify for assistance

New Delhi , March 31

The Government of Japan has extended a loan package amounting to 155,458 yen million (approx Rs 5,910 crore) to India under its Official Development Assistance (ODA) for 2005-06.

The loan would fund 10 projects, including part-financing the second phase of the Delhi Metro project and the proposed Bangalore metro rail project, besides eight environment and infrastructure projects across the country.

An Exchange of Notes for this purpose took place today between Mr Ashok Chawla, Additional Secretary in the Finance Ministry, and Mr Yasukuni Enoki, Ambassador of Japan to India.

Projects that qualify

The other projects that qualify for the ODA loan are a water supply and sewerage project in Bangalore, a pumped storage project in Purulia, West Bengal, rural electrification projects in three States, the Vishakapatnam Port Expansion project, the Swan River Integrated Watershed Management project in Himachal Pradesh, a forestry development project in Orissa, the Hussain Sagar Lake and catchment area improvement project in Andhra Pradesh, and a solid waste management improvement project in Kolkata.

Rates of interest

The rate of interest for the package would be 1.3 per cent a year for the infrastructure projects and 0.75 per cent for the environment sector projects.

The repayment period would be 20 years (after the grace period of 10 years) for the infrastructure projects, except the Rural Electrification Project, and 30 years (after the grace period of 10 years) for the environment and forestry sector projects.

For the Rural Electrification Project, the rate of interest would be 0.75 per cent and the repayment period 10 years (after the grace period of five years).

New peak

Mr Hidenao Yanagi, Minister for Economic Affairs in the Japanese Embassy, told newspersons that with the yen loan going up this year by 15.6 per cent over the previous year's commitment, the Japanese assistance to India had "attained a new peak again."

For the past three years, India has been the top recipient of the Japanese soft loan assistance.

"India and Japan have had a long and fruitful history of bilateral development co-operation since 1958. This is expected to be further strengthened and broad based in future ," a Government spokesperson said.

Japan provided 134,466 million yen (equivalent to Rs 5,109 crore approximately) for projects in the last financial year. The total ODA loan commitment till fiscal 2005 is 2,252.456 billion yen (equivalent to Rs 85,593 crore approximately).

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