Japan pledges over Rs 4000 crore loans for 5 Indian projects

NEW DELHI: After the success of Delhi Metro, a similar project in the Tamil Nadu will get a boost with Japan today extending Rs 852.69 crore for the Chennai Metro Project as part of the Rs 4,102.28 crore soft loans provided for five developmental projects in India.

The ODA loans, part of the first batch of the fiscal 2008-09, were announced by Japanese Foreign Minister Masahiko Koumura here today after his talks with External Affairs Minister Pranab Mukherjee.

The other four projects to receive the loans are the Punjab Biomass power project, the Hyderabad Outer Ring Road project-Phase II, Capacity Development for Forest Management and Personnel Training project and the Micro, Small and Medium Enterprises Energy Saving project.

The Chennai Metro Project will receive Rs 852.69 crore (21,751 million yen) to set up a 45-km long mass rapid transport system in the form of metro and elevated railways.

The Punjab Biomass Power Plant project will receive Rs 221.07 crore (5,637 million yen) to build small power plants in Punjab which will run on biomass.

The Ph-II of Hyderabad Outer Ring Road project will receive Rs 1647.57 crore (42,027 million yen) for construction of a 33-km long stretch in the northeast part of the road.

Capacity Development for Forest Management and Personnel Training project, which aims to improve training capacity of officials in 10 states will get Rs 205.45 crore (5,241 million yen).

The Micro, Small and Medium Enterprises Energy Saving project, which will get a soft loan of Rs 1176.03 crore (30,000 million yen), will promote energy saving activities of such industries by extending them medium and long-term loans. New Delhi and Tokyo will sign and exchange the notes later to formalise the agreement of the ODA loan package.