JAPAN TO PROVIDE RS. 4417 CRORE ODA LOAN TO INDIA

---

Japan will provide Rs.4417 crore (Japanese Yen 111,239 million) for seven projects as Official Development Assistance (ODA) to India. Dr. Adarsh Kishore, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Company Affairs, Government of India and Mr. Akira Hayashi, Ambassador of Japan to India exchanged the notes in this regard today.

The repayment period for the loan will be twenty to thirty years with a grace period of ten years and the rate of interest will be between 0.75 per cent to 1.8 per cent per annum. The loans will be disbursed in six to eight years from the dates of coming into force of the loan agreements.

The details of the projects to be financed are as under:

(i) Simhadri Thermal Power Station Project (Tranche IV) (Loan Amount: Yen 5,684 million or Rs 226 crores approx.): To construct 1,000 MW coal-fired thermal power station in order to cope with growing electricity demand and to ensure stable electricity supply in the State of Andhra Pradesh.

(ii) Bakreswar Thermal Power Station Units Extension Project (Loan Amount: Yen 36,771 million or Rs 1460 crores approx): To construct the thermal power station units 4 and 5, 210 MW each, in order to cope with the increase in electricity demand in the State of West Bengal and to assure stable electricity supply in the State and cope with the increase in electricity demand particularly for the Purulia Pumped Storage Plant during the off-peak period.

(iii) Delhi Mass Rapid Transport System Project (Tranche IV) (Loan Amount: Yen 34,012 million or Rs 1350 crores approx): To construct a new commuter railway transportation system in National Capital Territory of Delhi, in order to provide a safer, more efficient and environment friendly mode of transport, to mitigate deteriorating traffic condition and to prevent the area from further environmental pollution caused by increasing number of motor vehicles.

(iv) Punjab Afforestation Project (Tranche II) (Loan Amount: Yen 5,054 million or Rs 201 crores approx): The project aims to afforest and rehabilitate degraded forest areas to bridge the gap between demand and supply of the forest products, to reverse environmental degradation of hilly area of the State through active participation of the communities, increase the forest/tree cover by planting on available waste and farm lands and improve the stocking and productivity of the forests.

(v) Rajasthan Forestry and Biodiversity Conservation Project (Loan Amount: Yen 9,054 million or Rs 359 crores approx): The project aims to carry out plantation works, soil and moisture conservation works to check the desertification and improve the ecological status of the Aravalis, to protect the infrastructures like canals, roads, to improve biodiversity, to augment the availability of forest products like fuelwood, fodder, to generate employment opportunities and to improve the socio-economic conditions of the rural poor through active participation by local communities.

(vi) Yamuna Action Plan Project (II) (Loan Amount: Yen 13,333 million or Rs 529 crores approx): To improve the quality of water in the River Yamuna and the living environment in the cities along the river.

(vii) Ajanta-Ellora Conservation and Tourism Development Project (II) (Loan Amount: Yen 7,331 million or Rs 291 crores approx): to conserve and preserve monuments and natural resources, improve the infrastructure and visitor management, carry out tourist development activities and training programmes for higher quality of tourism, and improve the quality of life of local population in Maharashtra State, mainly in the Ajanta-Ellora region and Aurangabad Division.