Japan Extends 192 Billion Yen Loan for Six Projects in India
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Synopsis
On March 28, 2023, India and Japan signed loan agreements worth 191.736 billion JPY for six projects focused on forest management, water supply, urban transport, aquaculture, biodiversity conservation, and investment promotion. The collaboration strengthens the economic ties between the two countries.
Key Takeaways
- Loan amount: 191.736 billion JPY
- Projects: Six key sectors
- Support from JICA
- Focus on sustainable development
- Enhancing India-Japan relations
New Delhi, March 28 (NationPress) The Indian government and the Japanese government have entered into loan agreements totaling 191.736 billion Japanese Yen (JPY) for six initiatives under Japan’s Official Development Assistance to India. These projects span various sectors, including forest management, water supply, urban transport, aquaculture, biodiversity conservation, and investment promotion, as per a statement released by the Finance Ministry on Friday.
The agreements were formalized between the Government of India and the Japan International Cooperation Agency (JICA) on Thursday. The projects include the Tamil Nadu Investment Promotion Program (Phase 3) with a loan of JPY 36.114 billion, the Capacity Enhancement for Effective Forest Management project (JPY 8.280 billion), and the Construction of Chennai Seawater Desalination Plant (II) (JPY 52.556 billion).
Additional projects receiving funding include the Delhi Mass Rapid Transport System Project (Phase 4 Additional Corridors) (JPY 79.726 billion), the Assam State Aquaculture Promotion and Livelihood Improvement Project (JPY 3.580 billion), and the Punjab Biodiversity and Natural Resources Conservation Project (JPY 11.480 billion), according to the statement.
The Tamil Nadu investment initiative aims to create quality employment opportunities for youths by drawing in more investments, including foreign capital, in a manner that is both inclusive and sustainable. It also focuses on fostering emerging sectors and equipping the workforce with advanced manufacturing skills. The Chennai Desalination Plant project is designed to ensure a safe and reliable water supply through the construction of a seawater desalination facility and its associated water supply systems, thereby enhancing living standards for residents, including underprivileged communities, in the Chennai Metropolitan Area (CMA).
The Capacity Enhancement for Effective Forest Management project seeks to bolster the capabilities of forest officials in executing forest policies through research, pilot projects, improved training systems, and institutional strengthening aimed at forest conservation and climate change.
Continuing support from JICA will lead to the expansion of the Delhi Metro Rail project, enhancing the mass rapid transport system and fostering regional economic growth while also addressing climate change by alleviating traffic congestion and reducing vehicular emissions.
The aquaculture initiative in Assam is expected to boost fish production and improve the livelihoods of fisheries stakeholders by promoting aquaculture and strengthening the fisheries supply chain.
Meanwhile, the biodiversity project in Punjab aims to enhance ecosystem services and mitigate climate change effects through increased tree planting outside forests, conservation efforts, integrated wetland management, livelihood improvement, and institutional strengthening.
Economic cooperation remains a crucial aspect of India-Japan relations, which has seen significant progress in recent years. This further solidifies and enhances the Strategic and Global Partnership between the two nations, the statement concluded.
