India to get $75 mn soft loan from JBIC

India to get $75 mn soft loan from JBIC
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First Published: Mon, Dec 28 2009. 11 38 PM IST
Updated: Mon, Dec 28 2009. 11 38 PM IST
New Delhi: The government on Monday signed an agreement with the Japan Bank for Internal Cooperation (JBIC) for a $75 million (Rs351 crore) soft loan to partly fund its ambitious Delhi-Mumbai Industrial Corridor (DMIC) which will be built along the 150km band on both sides of the proposed 1,483km freight rail line being planned between Delhi and Mumbai.
The government has already approved a grant of $75 million in the 11th Five Year Plan period as its contribution for the project.
The proceeds of the fund will be used for master planning, feasibility studies, preparation of detailed project reports and obtaining government permits necessary for each infrastructure project. The DMIC is an India-Japan cooperation project aimed to develop infrastructure.
“This signing of the agreement will lead to accelerated focus on the project. This project will attract huge investments up to $90 billion. It will also have huge multiplier effect in the form of infrastructure development and wealth creation,” Commerce minister Anand Sharma said.
DMIC also envisages the establishment of 24 industrial townships or smart cities with world-class infrastructure spanning six states within the corridor. DMIC also signed an agreement with the Japan External trade Organization (JETRO) for facilitating collaboration between Japanese and Indian firms for developing these smart cities with an eye on eco-sustainability.
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First Published: Mon, Dec 28 2009. 11 38 PM IST