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Japan International Cooperation Agency (JICA) has extended Official Development Assistance (ODA) loan of around ₹2,000 crore for the fifth phase of Chennai Metro Project. It also extended a loan of about ₹1,300 crore for the second phase of Tamil Nadu Investment Promotion Programme.
The loan agreement was signed between Takema Sakamoto, Chief Representative, JICA India Office, and S Selvakumar, Joint Secretary, Department of Economic Affairs, in Delhi, says a JICA press release. The fifth phase of Chennai metro project will provide additional metro rail system network of around 9 km from Washermanpet to Wimco Nagar. This is in addition to 45 km in existing project from Washermanpet to Chennai airport, and Chennai Central to St. Thomas Mount. The extension up to Wimco Nagar will connect northern parts of Korukkupet, Tondiarpet and Tiruvottriyur with the city’s central area. JICA has extended around ₹9,000 crore in concessional ODA loans over four tranches since 2008 for the development of around 45 km metro rail system in Chennai. With today’s announcement, the cumulative loan for Chennai metro increases to ₹11,000 crore, the release said.
The loan of ₹1,300 crore by JICA to Tamil Nadu Investment Promotion Programme is an additional loan for the first phase, which was signed in 2013 to provide up to ₹780 crore soft loan. With today’s announcement, the cumulative loan amount for this programme amounts ₹2,670 crore.
The ODA loan for the programme is being offered at a concessional 1.4 per cent interest rate and 30 years of repayment period, including ten years of grace period.The assisted programme aims at developing the investment climate through strengthening the policy framework, and facilitating development of trunk and industry-related infrastructure in a timely manner. This in turn will help in getting more foreign direct investments to Tamil Nadu. The programme also aims to support the medium-term policy programme of the State government as mentioned in Tamil Nadu Vision 2023, the release said.
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