Signing of Japanese ODA Loan Agreements with India: Contributing to the deepening of bilateral relations and mutual development between Japan and India by supporting India’s achievement of the SDGs

[Goal 3] Good Health and Well-Being
SDGs
[Goal 8] Decent Work and Economic Growth
SDGs
[Goal 13] Climate Action
SDGs

2024.02.20

On February 20th, Japan International Cooperation Agency (JICA) signed loan agreements with the Government of India in Delhi to provide Japanese ODA loans of up to a total of 232,209 million yen for the following 9 projects.

signing ceremony

signing ceremony

Details for the loan are provided below.

(1) Project for Promoting Start-up and Innovation in Telangana

(a) Objective and Summary

The objective of the project is to discover potential entrepreneurs including women and rural ones, promote entrepreneurship and support business expansion of MSMEs by conducting Capacity Building, Infrastructure, Finance and Market Creation subprojects for entrepreneurs and MSMEs, thereby contribute to create inclusive employment opportunities and promote sustainable industrial development in the Telangana State. The project will contribute to the achievement of SDGs Goals 8 and 9.

(b) Executing Agency

Information Technology, Electronics and Communications Department (ITE&CD), Government of Telangana State
URL:https://telangana.gov.in/departments/information-technology-electronics-and-communications/

(c) Planned Implementation Schedule

(2) Project for the Construction of Chennai Peripheral Ring Road (Phase 2)

(a) Objective and Summary

The objective of the project is to meet the rapidly increasing road traffic demand in Chennai metropolitan area, alleviate traffic congestion and strengthen connections to the southern part of the state by constructing a segment 5 of Peripheral Ring Road and introducing ITS in segments 2 to 5, thereby promoting regional economic development. The project will contribute to the achievement of SDGs Goals 3, 8 and 9.

(b) Executing Agency

Highways and Minor Ports Department, Government of Tamil Nadu
URL:https://www.tn.gov.in/department/13

(c) Planned Implementation Schedule

(3) North East Road Network Connectivity Improvement Project (Phase 7)

(a) Objective and Summary

The objective of the project is to improve the connectivity in North Eastern Region of India as well as the connectivity with the other part of India and neighboring countries through establishing and improving National Highway 127B (Phulbari - Goeragre section) in Meghalaya state, thereby promoting regional socio-economic development. The Project will contribute to the achievement of SDGs Goals 3, 8, 9, and 13.

(b) Executing Agency

Meghalaya Public Works Department
URL:https://megpwd.gov.in/

(c) Planned Implementation Schedule

(4) North East Road Network Connectivity Improvement Project (Phase 3) (II)

(a) Objective and Summary

The objective of the project is to improve the connectivity of North Eastern Region of India through constructing the bridge between Dhubri and Phulbari, thereby promoting regional socio-economic development. The project will contribute to the achievement of SDGs Goals 8 and 9.

(b) Executing Agency

National Highway Infrastructure Development Corporation Limited (NHIDCL)
URL:https://nhidcl.com/

(c) Planned Implementation Schedule

(5) Project for the Improvement of Urban Water Supply System in Uttarakhand

(a) Objective and Summary

The objective of the project is to provide stable water supply services to urban towns including mountainous/ remote area where the people do not have access to sufficient water in Uttarakhand state by improving the water supply facilities, thereby contributing to the improvement of the living environment. The project will contribute to the achievement of SDGs Goals 3, 6 and 13

(b) Executing Agency

Department of Drinking Water and Sanitation, Government of Uttarakhand
URL:https://swsm.uk.gov.in/

Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam
URL:https://peyjal.uk.gov.in/

(c) Planned Implementation Schedule

(6) Project for Promoting Sustainable Horticulture in Haryana (I)

(a) Objective and Summary

The objective of the project is to promote sustainable horticulture and improve farmer’s income by promoting the marketing of horticulture crops through the support of crop diversification and infrastructure development as well as capacity development for strengthening value chain, thereby contributing to economic and social development in Haryana state. The project will contribute to the achievement of SDGs Goals 1, 2, 8 and 13.

(b) Executing Agency

Department of Horticulture, Government of Haryana
URL: https://hortharyana.gov.in/en

(c) Planned Implementation Schedule

(7) Project for Climate Change Response and Ecosystem Services Enhancement in Rajasthan

(a) Objective and Summary

The objective of the project is to respond to climate change and enhance ecosystem services through afforestation, forest conservation, biodiversity conservation and eco-restoration, livelihood improvement activities and institutional strengthening, thereby contributing to sustainable socio-economic development in Rajasthan. The project will contribute to the achievement of SDGs Goals 1, 5, 13 and 15.

(b) Executing Agency

Rajasthan Forest Department, Government of Rajasthan
URL:https://forest.rajasthan.gov.in/content/raj/forest/en/home.html#

(c) Planned Implementation Schedule

(8) Project for the Establishment of the Medical College Hospital at Nagaland Institute of Medical Sciences and Research, Kohima

(a) Objective and Summary

The objective of the project is to establish the tertiary level medical service delivery system in the state of Nagaland by developing a Medical College Hospital and enhancing the system for development of human resource of healthcare through clinical-based education, thereby contributing to promote Universal Health Coverage* in the state. The Project will contribute to the achievement of SDGs Goal 3.

*Universal health coverage (UHC) means all people having access to the full range of quality health-promotion, prevention, treatment, and functional-recovery services they need, without financial hardship.

(b) Executing Agency

Department of Health and Family Welfare, Nagaland
URL:https://nagahealth.nagaland.gov.in/

(c) Planned Implementation Schedule

(9) Dedicated Freight Corridor Project (Phase1) (V)

(a) Objective and Summary

The objective of the project is to cope with the increase in demand for freight transport in India by constructing a new dedicated freight railway system, thereby promoting comprehensive regional economic development along the freight corridor. This will be achieved through improvement and modernization of the inter-modal logistic system handling considerable freight traffic and poised for massive growth. The project will contribute to the achievement of SDGs Goals 8, 9, 11, and 13.
Special Terms for Economic Partnership (STEP)** will apply to the Japanese ODA loan for this project, and Japanese technology will be utilized for components being constructed under the project such as railroad tracks and equipment used for signaling and communications.

(b) Executing Agency

Ministry of Railways
URL:https://indianrailways.gov.in/

Dedicated Freight Corridor Corporation India Limited
URL:https://dfccil.com/

(c) Planned Implementation Schedule

Terms and Amount of Loan

Project title Amount
(million yen)
Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Project for Promoting Start-up and Innovation in Telangana 23,697 1.80 0.20 30 10 General untied
Project for the Construction of Chennai Peripheral Ring Road (Phase 2) 49,847 1.80 0.20 30 10 General untied
North East Road Network Connectivity Improvement Project (Phase 7) 15,561 1.80 0.20 30 10 General untied
North East Road Network Connectivity Improvement Project (Phase 3) (II) 34,537 1.80 0.20 30 10 General untied
Project for the Improvement of Urban Water Supply System in Uttarakhand 16,211 1.80 0.20 30 10 General untied
Project for Promoting Sustainable Horticulture in Haryana (I) 16,215 1.45 0.20 20 6 General untied
Project for Climate Change Response and Ecosystem Services Enhancement in Rajasthan 26,133 1.60 0.20 30 10 General untied
Project for the Establishment of the Medical College Hospital at Nagaland Institute of Medical Sciences and Research, Kohima 10,008 1.60 0.20 30 10 General untied
Dedicated Freight Corridor Project (Phase1) (V) 40,000 0.30 0.20 40 10 STEP

**STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and a company of borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.

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