Japan funds India’s Infra projects

01-Apr-2016 # Wider Regions

Japanese lender, Japan International Cooperation Agency (JICA), committed loans worth $2.15 billion (about Rs.14,251 crore) for 5 infrastructure development projects in India under various agreements. The latest agreement was signed by Takema Sakamoto, Chief Representative, JICA India and S Selvakumar, Joint Secretary, DEA, Ministry of Finance.

As per the agreements, JICA will provide funding for a stretch of the western arm of the ambitious dedicated freight corridor (DFC) project and north-east road connectivity improvement project, apart from sanitation improvement project in Odisha, power transmission project in Madhya Pradesh and horticulture project in Jharkhand.

The main feature of the freight 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. The executing agencies for the project are the Ministry of Railways and Dedicated Freight Corridor Corporation of India Limited (DFCCIL).

India is JICA’s largest partner in the world. Sakamoto said, “JICA is committed towards development of infrastructure in India. 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 modernisation of inter-modal logistic system.”