JICA extends ODA loan of INR 2,809 crores for Chennai Peripheral Ring Road Project (Phase 2) in India

~ Improving connectivity and economic development in Chennai Metropolitan Region by easing traffic congestion and improving connectivity to the southern region ~

New Delhi, February 20, 2024: Japan International Cooperation Agency (JICA) signed a loan agreement amounting to 49,847 million Japanese Yen (approximately INR 2,809 crores) for the construction of the Chennai Peripheral Ring Road Project (Phase 2) in the state of Tamil Nadu.

The Chennai Peripheral Ring Road is placed as one of the priority projects in the “Comprehensive Integrated Master Plan for Chennai-Bengaluru Industrial Corridor (2015)” based on agreement between Government of Japan and Government of India. The objective of the project is to meet the rapidly increasing traffic demand in Chennai metropolitan area , ease congestion, reduce transportation time by about 40 minutes from/to Chennai and Ennore ports (through the phase 1 & 2 project) , and enhance connectivity to the southern part of the state by constructing 26.3km Peripheral Ring Road and introducing Intelligent Transportation Systems. JICA signed the loan agreement for the 1st phase of the project in March 2018, and supported the construction of Section 1 (24.5km in total), which is the northernmost part of the Peripheral Ring Road. Subsequently, in this 2nd phase of the project, JICA contributes to construction of Section 5, which is the southernmost part of the Peripheral Ring Road, and introduction of Intelligent Transportation Systems (ITS) from Sections 2 to 5.

The ODA loan agreement 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, “The traffic volume in Chennai has been increasing steeply with rapidly growing urbanization, resulting in continuous severe traffic congestions. Chennai metropolitan area accommodates lots of industrial companies and factories supported by its location, namely, critical cross-point for road as well as marine transportation for importing/exporting industrial goods and materials from/to other cities in India and South-East Asia. JICA will contribute to mitigating traffic congestion and improving industrial development in Chennai through both the 1st Phase and the 2nd Phase 2 of the project.”

The executing agency is the Highways and Minor Ports Department, the Government of Tamil Nadu.

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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