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'Japan's lending to India hit by rupee depreciation, project delays'

JICA disbursed Rs 6,800 cr of the committed Rs 20,000 cr

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T E Narasimhan Chennai
Last Updated : Feb 14 2014 | 5:55 PM IST
The Japan International Cooperation Agency (JICA), a governmental agency of Japan, has committed loans worth Rs 20,000 crore in 2012-13 to India. However, it could disburse only Rs 6,800 crore. A senior official from the agency attributed the slowdown in the off-take due to rupee depreciation and project delays.

Ichiguchi Tomohide, senior representative (deputy chief representative) at JICA's India Office said that “the disbursement was less due to rupee depreciation and project delays. The delays are mainly due to land acquisition, clearance and delay in tendering.”

He noted, some of the major projects which are getting delayed are metro rail projects in Bangalore and Kolkata, where land acquisition is an obstacle.

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gWe hope things would resolve and we will get closer to committed number going forward,” said Tomohide, who was in Chennai to announce the upcoming seminar on Sustaining Forests & Livelihood through Joint Forest Management, scheduled on February 17 and 18 on the outskirts of Chennai.

Tomohide said cumulative loan assistance for India by JICA currently stands at Rs 2.5 lakh core. The Agency started its operations way back in 1958 in India. The country is now the largest partner for JICA. Infrastructure, including transport, water, energy and forestry, has been the key focus for JICA.

In India, currently Andhra Pradesh tops on the JICA's list, followed by Tamil Nadu. “We think Tamil Nadu will overtake considering JICA's commitment to the State is increasing,” said Tomohide.

Commenting on challenges in India, he said, unlike other competitors – China, Thailand, Vietnam and others, in this part of the World, there is no World class industrial parks, managed by private companies, it is mostly developed and managed by the Governments. India need private zones. Besides, the Government should also encourage captive power for the industrial zones.

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First Published: Feb 14 2014 | 5:47 PM IST

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