Roads ministry in talks with Japanese fund for Rs2 trillion loan
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New Delhi: The ministry of road transport and highways is in talks with a Japan-based fund for a Rs2-trillion loan at low interest rates.
A cabinet note will be moved shortly for the same as part of a strategy to generate funds for India’s new integrated infrastructure planning initiative.
India has been trying to leverage its relationship with Japan to access technology and funds. Japan has pledged investments of around $33 billion between 2014 and 2019 in India’s manufacturing and infrastructure sectors.
“Fund requirements is not an issue. There is a fund from Japan which wants to offer this loan at around 5% rate of interest. We will prepare a cabinet note for the same,” said a senior government functionary requesting anonymity.
He declined to name the Japanese fund. Mint could not ascertain the fund’s name.
All Japanese government loans to an Indian government entity are extended through the Japan International Cooperation Agency (JICA). The Japan Bank for International Cooperation (JBIC) has also been active in India.