Japan extends $1.55 billion loan for multiple development projects

Japan has extended an official development assistance of $1.55 billion for nine development projects, including the construction of phase 2 of the Chennai peripheral ring road and phase 1 of the dedicated freight corridor.

The $333 million funding for the Chennai road project will help alleviate traffic congestion and boost connectivity with the southern part of Tamil Nadu, while the $270 million fifth tranche of funds for the freight corridor will help modernize intermodal logistics system and enable handling of more freight, a government press release said.

Tokyo will extend another $333 million loan for two road network connectivity projects aimed at improving infrastructure development in India’s North-East. The funds will be used to construct the Dhubri-Phulbari bridge and for work on the Phulbari-Goeragre section of NH 127B highway project, the release said.

National Highway 127B, commonly called NH 127B, is a national highway in North-East India that connects Srirampur in Assam to Nongston in Meghalaya.

Funding for other developments projects include $160 million for a startup and innovation hub in Telangana that will help spot entrepreneurial skills, with the focus on women and rural population, while also supporting expansion of small businesses.

About $110 million will be deployed to promote sustainable horticulture in Haryana and improve farmer’s income by promoting crop diversification and infrastructure development.

While a project in Nagaland will help develop tertiary level medical service delivery by developing a medical college hospital contributing towards universal health coverage, a forestry project in Rajasthan will enhance ecosystem services through afforestation, forest and biodiversity conservation, the release said.

For the mountainous state of Uttarakhand, part of the funding (about $110 million) will be used to provide stable water supply to urban towns.

The loans will be administered by the Japan international cooperation Agency (JICA), with most projects expected to reach completion between 2026 and 2034.

“India and Japan have had a long and fruitful history of bilateral development cooperation since 1958. Economic partnership, a key pillar of India-Japan relations, has steadily progressed in the last few years. Exchange of notes for these important projects will further strengthen the strategic and global partnership between India and Japan,” the finance ministry said in the statement.