The Japanese funding agency, Japan International Cooperation Agency (JICA), has signed a loan agreement with the Government of India to provide soft loans up to a total of 1,99,035 million yen (about Rs 11,400 crore).
Of the total loan amount, about 68 per cent will be used to fund the construction of the western arm of the dedicated rail freight corridor, 24 per cent will be used for the metro project in Chennai, and the remaining for a piped water project in Purulia district of West Bengal.
According to a JICA release, 1,36,119 million yen has been allocated for the construction of a dedicated freight corridor between Delhi and Mumbai. The concessional loan of 0.20 per cent will be repaid over 40 years with 10 years grace period. The project is to be executed by the Ministry of Railways and the Dedicated Freight Corridor Corporation of India Ltd.
Chennai’s metro rail project will receive 48,691 million yen. The loan carries a rate of 1.4 per cent and has to be repaid in 30 years with a grace period of 10 years.
The Piped Water Supply Project in Purulia district of West Bengal will receive 14,225 million yen. The project will construct water supply facilities to provide safe and adequate drinking water to the people of the area, which is plagued by chronic water deficiency and fluoride contamination in the ground water. The loan carrying a rate of 1.40 per cent is to be repaid in 30 years with grace period of 10 years. The project is to be executed by the Public Health Engineering Department of West Bengal.