Japan to extend Rs 1,345 cr loan to India

NEW DELHI: Japan on Tuesday agreed to lend Yen 39,555 million (around Rs 1,345 crore) to India as official development assistance (ODA) to be utilised for power transmission and water supply projects in Maharashtra and Goa.

Japan has recently introduced a Double Track Mechanism for providing ODA loan to India in two batches. This loan is under the first batch, an official release said.

The interest rate for Goa water supply and sewerage project would be 1.3 per cent and that on Maharashtra transmission system project 0.75 per cent per annum, it said.

The repayment period would be 30 years, including a grace period of 10 years, for the Goa project. For the Maharashtra project, it would be 15 years including a grace period of five years, the release said.

Documents to this effect were exchanged between Japanese Ambassador to India Yasukuni Enoki and Kumar Sanjay Krishna, Joint Secretary in Finance Ministry.

The Japanese government provided Yen 184,893 million (about Rs 6,916 crore) for projects in FY 2006 ODA package. The total ODA loan commitment including this batch of loan has increased to Yen 2476.985 billion (about Rs 93,967 crore).

Currently, 54 projects are being implemented in India with Japanese loan assistance of Yen 839.042 billion (about Rs 28,527 crore).