JICA extends ODA loan of INR 483 crores for capacity enhancement in effective forest management

National, 27 March 2025: Japan International Cooperation Agency (JICA) has signed a loan agreement amounting to 8,280 million Japanese Yen (approximately INR 483 crores) for the Project for Capacity Enhancement for Effective Forest Management.

The project aims to strengthen the capacity of forest administrators in implementing policies by enhancing research, business development, and training systems focused on climate change countermeasures through forest and biodiversity conservation. As a key initiative in India's forest and biodiversity sector, the project aligns with national priorities for sustainable environmental management.

The ODA loan agreement was signed between Ms. Manisha Sinha, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. TAKEUCHI Takuro, Chief Representative of JICA India.

Commenting on the occasion, Mr. TAKEUCHI Takuro, Chief Representative of JICA India, stated, “India's rich biodiversity and forest ecosystems play a crucial role in global environmental sustainability. JICA is committed to supporting India's initiatives in forest conservation and climate resilience through capacity-building measures. This project will help advance scientific research, policy implementation, and training programs that will contribute to a sustainable and resilient forestry sector.”

India has set a target to restore forest cover to 33% under the National Forest Policy, 1988. Despite improvements, deforestation pressures continue due to urbanization and livelihood dependencies. The project will contribute to achieving India’s Nationally Determined Contribution (NDC) targets under the Paris Agreement, which include increasing carbon dioxide absorption by 2.5-3 billion tons through afforestation. It will also support India's upcoming forest policy revision, with a draft introduced in 2018, which emphasizes maximizing ecosystem services, strengthening climate change mitigation and adaptation efforts, and fostering sustainable water management.

The project is expected to benefit the Ministry of Environment, Forest and Climate Change (MOEFCC), state forestry departments, and research institutions by enhancing their capacity for effective forest management. It will support the implementation of climate change adaptation strategies through forest and biodiversity conservation, helping to mitigate environmental degradation. Additionally, the project aims to enhance resilience against natural disasters such as floods and droughts by improving ecosystem services.
The Ministry of Environment, Forestry and Climate Change (MOEFCC) will be the primary executing agency.

This initiative aligns with India’s commitment to the Paris Agreement and Sustainable Development Goals (SDGs), specifically Goal 13 (Climate Action) and Goal 15 (Life on Land). It also complements ongoing afforestation and biodiversity conservation projects in states such as Rajasthan, Tamil Nadu, and West Bengal.

JICA has been a longstanding partner in India’s environmental conservation efforts. As of December 2024, JICA has extended JPY 341 billion in ODA loans for the forest and biodiversity sectors in India. By leveraging experience from past projects like the Orissa Forest Sector Development Project, JICA aims to ensure long-term sustainability and effectiveness in forest and biodiversity conservation efforts.
This project represents a significant step towards strengthening India’s forest management capabilities, ensuring ecological balance, and enhancing resilience to climate change.

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.71491/-