JICA extends ODA loan of INR 877 crores to enhance connectivity in Northeast India with North East Road Network Connectivity Improvement Project (Phase 7)

New Delhi, February 20, 2024: Japan International Cooperation Agency (JICA) signed a loan agreement amounting to JPY 15,561 million yen (approximately INR 877 crores) with the Government of India for the North East Road Network Connectivity Improvement Project (Phase 7). This project aims to improve the National Highway 127B (NH127B) from Phulbari to Goeragre in the state of Meghalaya.

The project will involve widening and improvement of the national highway in the western part of Meghalaya, which connects the Dhubri-Phulbari bridge to Goeragre near Tura, the second largest city of Meghalaya. On a larger scale, the Phulbari-Goeragre stretch forms part of the stretch of total 180km financed by JICA, connecting Srirampur, Assam on the East-West Corridor to the border town of Dalu in Meghalaya, expected to become a new trade corridor with neighboring Bhutan and Bangladesh.

The project aligns with the Government of India’s priority to reduce regional disparities and promote socio-economic development in the Northeast region by improving road infrastructure to enhance the flow of goods and people, boost trade, and foster economic prosperity in the region.

It also aligns with Japan's assistance policy for India, which emphasizes enhancing connectivity and supporting sustainable growth. Focusing on the development of Northeast India, Prime Minister Kishida during his visit to Delhi in March 2023 announced ‘the Bay of Bengal-Northeast India industrial value chain concept’, viewing the Bay of Bengal as a single economic zone and connecting the region to foster growth. The project contributes to this vision through increased connectivity and improving the movement of people and goods.

The loan agreement for the project was signed between Mr. Vikas Sheel, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. SAITO Mitsunori, Chief Representative, JICA India.

Speaking on this occasion, Mr. SAITO Mitsunori, Chief Representative of JICA India office said, “JICA's support for the project underscores its commitment to promoting sustainable and inclusive growth in Northeast India. This stretche between Phulbari and Goeragre will bridge the missing link from the East-West Corridor to the border town of Dalu, Meghalaya, and once completed the region will have much potential to become a new economic corridor through increased connectivity with neighboring countries. The successful implementation of the of this project requires collaboration among various stakeholders, including the Meghalaya Public Works Department (MPWD), Government of Meghalaya and local communities. JICA remains committed to working closely with all partners to ensure the project's success.”

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.7743700/-

About JICA
Established, by a specific law, as an incorporated administrative, as the sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries like India and provides assistance in the form of loans, grants, and technical cooperation so that emerging countries can strengthen their capabilities.

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