The Hindu : New Delhi News : Delhi Metro gets more funds

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Sunday, Mar 29, 2009
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New Delhi

Delhi Metro gets more funds

Staff Reporter

77,753 million yen Japanese aid for Phase 2 of project
‘Funds to help activate economy, improve ecology’

NEW DELHI: Japan has extended financial assistance totalling Rs.7,159 crore to India for implementing four major projects, including the Delhi Metro railway network.

This package of official development assistance in the form of soft loan is said to be the largest ever yen loan assistance to India so far.

In a statement, the Japanese Embassy here said the funds would help activate the economy and improve the environment by relieving congestion and reducing emission of exhaust gases in the Capital. )The Japanese Government has set aside 77,753 million yen for Phase 2 of the Delhi Metro railway. The funds will come in handy for construction of 414 km of underground, elevated and above-ground railway in Delhi.

Apart from the Delhi Metro Rail Corporation, the Japanese Government has offered 29,453 million yen for the Guwahati Water Supply Project, 17,095 million yen for the Hogenakkal Water Supply and Fluorosis Mitigation Project (Phase 2) and 12,727 million yen for the Kerala Water Supply Project.

The Guwahati water supply project is aimed at providing a safe and stable water supply to the city of Guwahati, while the Hogenakkal project will help provides water supply facilities and alleviation of health damage caused by fluorine in the Krishnagiri-Dharmapuri region in Tamil Nadu. The Kerala Water Supply Project (III) aims at improving the water supply facilities in five cities and villages of Kerala.

“For the last five consecutive years since the financial year 2003, India has been the top recipient of Japanese soft loan assistance. Since the Government of Japan has already committed the loan package in last October as the first batch, the total amount of Japanese soft loan to India for this financial year is 236,047 million yen (about Rs.12,332 crore),” said the Japanese Embassy.

These concessional loans will be made available through the Japan International Cooperation Agency at an interest rate of 1.2 per cent per year with a repayment period of 30 years including a grace period of 10 years.

The financial package is aimed at supporting India’s efforts to establish infrastructure to boost and sustain economic growth, alleviate poverty and improve environmental issues.

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