New Delhi: Japan today approved a package of about Rs7,074 crore in the form of soft loan assistance for projects in the areas of power, transportation, water supply and environment in India.
Japan has already committed Rs1,345 crore loan package last August to India. With the fresh assistance, the total soft loan to the country this financial year is Rs8582 crore, according to a statement issued by the Japan Embassy.
Hideaki Domichi, Japanese ambassador to India and Sanjay Krishna, joint secretary in the ministry of finance, government of India exchanged notes to formalize the agreement to this effect here today.
These concessional loans will be made available through the Japan Bank for International Cooperation, generally at 1.2% per annum, and will have a repayment period of 30 years, including grace period of 10 years.
The package covers seven large-scale projects, including Delhi Mass Rapid Transport System Project (about Rs2,864 crore), Haryana Transmission System Project (about Rs830 crore), Uttar Pradesh Participatory Forest Management and Poverty Alleviation Project (about Rs530 crore), Tamil Nadu Urban Infrastructure project (about Rs339 crore) and Kolkata East-West Metro Project (about Rs255 crore).
The Embassy said that Phase-II of the Delhi Metro Project (DMP) would continue to receive financial assistance from Japan. Following the successful DMP, the Kolkata Metro Project would also receive the assistance in this package, it added.