 "Japan extends Rs 14,251 cr loan for infrastructure")
Under the agreement, JICA will provide Rs 6,098 crore for funding a stretch of the western arm of the ambitious dedicated freight corridor (DFC) project and Rs 3,951 crore for funding Phase I of the north-east road connectivity improvement project, apart from Rs 1,517 crore for a sanitation improvement project in Odisha, Rs 909 crore for a power transmission project in Madhya Pradesh and Rs 274 crore for a horticulture project in Jharkhand.
Dedicated Freight Corridor Corporation (DFCCIL), an arm of the rail ministry, is executing the project under which 1,504 km of freight-specific rail line on double tracks is being constructed between Dadri in Uttar Pradesh to Jawaharlal Nehru Port near Mumbai. The project, along with its eastern arm, is likely to be commissioned in 2018.
JICA' latest assistance covers the third tranche of the loan for Phase-I of the project. "The main feature of the project is the construction of new double track electrified railway lines for the sole use of high speed freight cargo trains as the backbone of Delhi-Mumbai Industrial Corridor (DMIC) development plan," JICA said in a statement today.
The lender added that the rail ministry has confirmed the funds currently available under the second tranche of the Phase-I is likely to be exhausted in the coming fiscal year (2016-17) based on the latest disbursement projection of the project, making further mobilization of funds essential.
"This loan will support to cope with the huge and rapid increase of freight transport demand in India by constructing new dedicated freight railway system. It will help to promote comprehensive regional economic development along the freight corridor, DMIC, through improvement and modernization of inter-modal logistic system handling considerable freight traffic," Chief Representative at JICA India Takema Sakamoto said. The loan will be available at an interest rate of 0.10 per cent per annum with a repayment period of 40 years and a grace period of ten years.
Under Phase-I of the project, DFCC is laying a 950 km freight line between Rewari and Vadodara connecting major cities in Gujarat, Rajasthan, and Haryana. The line will operate with high-quality and high speed freight locomotives. JICA said, the project will become the backbone of DMIC initiative and aim at promoting direct investment by Indian and Japanese companies.
Under the agreements signed today, JICA will also provide Rs 3,951 crore for improvement of National Highways 51 and 54 in the NE region to enhance connectivity and mitigation of poverty in the region. Also, the Rs 1,517 crore loan to Odisha would be used to set up sewage and rainwater drainage facilities in Bhubaneswar and Cuttack.
A NEW RISING SUN IN INDO-JAPAN TIES
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Japan extends loan of Rs 14,251 crore for projects in Indian infrastructure
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Loan agreements include Rs 6,098 crore for funding of Phase-I of western DFCC
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Loan secured at 0.10 per cent interest rate with 40-year repayment period
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Road connectivity improvement in North-East gets Rs 3,951 crore
- Jharkhand sanitation project to get Rs 1,517 crore
