JICA extends ODA loan of INR 669 crores for Punjab Biodiversity and Natural Resources Conservation Project in India

Chandigarh, 27 March 2025: The Japan International Cooperation Agency (JICA) has signed a loan agreement amounting to 11,480 million Japanese Yen (approximately INR 669 crores) for the Punjab Biodiversity and Natural Resources Conservation Project, aimed at enhancing ecosystem services and addressing climate change challenges in the state of Punjab, India.

Punjab, known as the "granary of India," faces significant environmental challenges due to deforestation, groundwater depletion, and biodiversity loss, exacerbated by rapid urbanization and climate change. With forest and tree cover currently at just 6.12% of the state’s area, Punjab aims to expand it to 7.5% by 2030. Additionally, wetlands and wildlife habitats have witnessed degradation, leading to biodiversity loss. A lack of alternate livelihood options for local communities further compound these challenges.

The project aims to enhance ecosystem services and mitigate the impacts of climate change through increased trees outside forest, biodiversity conservation, integrated wetland management, livelihood improvement, and institutional strengthening, thereby contributing to sustainable socio-economic development in Punjab.

The project’s key focus areas in Punjab include community-based agroforestry initiatives, biodiversity conservation, watershed management, and institutional strengthening of the Department of Forests & Wildlife Preservation and its allied institutions. It incorporates provisions for technical support, capacity building, and infrastructure development. The project will enable demonstration of scalable and replicable models for sustainable land management, aiming to enhance ecological resilience and socio-economic development in Punjab.

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.

Speaking on this occasion, Mr. TAKEUCHI Takuro, Chief Representative of JICA India Office, said, "Punjab’s ecosystem is under growing pressure due to deforestation, rapid agricultural expansion, ground water depletion and climate change. This project is a crucial step toward restoring natural resources, supporting sustainable forestry and livelihoods whilst strengthening climate resilience. JICA is committed to promoting environmental sustainability and biodiversity conservation in India through long-term cooperation."

The Department of Forests and Wildlife Preservation, Government of Punjab, is the executing agency for the project, responsible for its implementation and long-term sustainability. This initiative aligns with Japan’s Development Cooperation Policy with India (November 2023), which prioritizes clean socio-economic development, environmental conservation, and climate change mitigation. The project also contributes to Japan’s commitments under the Kunming-Montreal Biodiversity Framework and the Glasgow Leaders' Declaration on Forests and Land Use, reinforcing global efforts to restore degraded ecosystems.

Additionally, this initiative complements previous afforestation projects in Punjab supported by Japan, as well as other global environmental initiatives, including India’s Nationally Determined Contribution (NDC) targets under the Paris Agreement, which aim to enhance forest carbon sequestration and achieve net-zero emissions by 2070.

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