The Hindu Business Line : Japan to extend Rs 4,100-cr soft loans for five projects

New Delhi, Aug. 5 Japan has pledged to extend soft loans amounting to more than Rs 4,100 crore for five projects, including the Chennai Metro project and Hyderabad Outer Ring Road project (phase II).

The pledge, which was made by the visiting Japanese Foreign Minister, Mr Masahiko Koumura, is for the first batch for the current financial year.

The Japanese Government has pledged almost Rs 870 crore for the Chennai Metro project which will establish a mass rapid transport system of about 45 km in both the metro and elevated rail form.

Hyderabad project

The Japanese Government has also pledged about Rs 1,600 crore for the outer ring road project (Phase II) in Hyderabad which will be spread over 33 km in the north-east part of the outer ring road project.

The other projects for which the Japanese Government has pledged loan include the Punjab biomass power plant which will see small-size power plants, which consume biomass as the fuel coming up in the state.

Besides, Japan has pledged funds for micro, small and medium enterprises’ energy saving project by offering medium and long-term loans specially designed for energy saving to those companies and improving the financing ability of the implementing agency.

Terms & conditions

The terms and conditions at which the loan is to be made available will be firmed up at a later date when the two Governments sign and exchange notes to formalise the Overseas Development Assistance loan package, the Japanese Government said in a statement.

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