Japan to provide Rs 1,267 cr loan for road project in Bihar

NEW DELHI: Japan International Cooperation Agency will provide Rs 1,267 crore loan for Bihar's National Highway Improvement Project.

Under the agreement signed between JICA and the Centre today, the loan is being provided for upgradation of National Highway 82 connecting Gaya and Bihar sharif in Bihar covering 92.93 km, a release said.

The loan is at a concessional rate of 1.4 per cent, with a repayment period of 30 years and grace period of 10 years.

The funds will be used for widening the highway into four lanes and for constructing 3 bypasses circumventing congested areas. The project is to be completed by February 2019.

"The loan being given for upgradation of highway in Bihar should cut travel time, promote tourism and lead to overall development of the state," JICA Chief Representative Shinya Ejima said.

JICA helps developing nations in promoting socio-economic projects.