March 31, 2017
New Delhi, March 31, 2017: Japan International Cooperation Agency (JICA) today has extended Official Development Assistance Loan (ODA) of 33,321 million Japanese Yen (approximately INR 2,000 crores) to the Chennai Metro Rail Ltd. (CMRL) for building of Mass Rapid Transport System. The ODA loan's conditions are very concessional, i.e. 1.4% and 0.01% interest rate and 30 years of repayment period (including 10 years of grace period). This assistance from JICA will further mitigate the road traffic, traffic accidents and traffic pollution, and will eventually lead to balanced regional socio-economic development and enhancement of Chennai's atmospheric environmental condition.
India is JICA's largest partner in the world. With the signing of this loan agreement for Chennai Metro Project, the cumulative loan amount provided by JICA for metro projects in India (including Delhi, Bengaluru, Kolkata, Mumbai and Ahmedabad Metro's) exceeds 2.6 trillion Japanese Yen (approximately INR 1.5 trillion).
The agreement was signed between Mr. Takema SAKAMOTO, Chief Representative, JICA India Office and Mr. S. Selvakumar, Joint Secretary, Department of Economic Affairs, the Ministry of Finance, Government of India in New Delhi.
Speaking on the occasion, Mr. Takema SAKAMOTO, Chief Representative, JICA India Office said, "When completed, this Project will provide improved access to public transport for the dense population comprising predominantly industrial workers to move towards the central business districts of Chennai for work. It will cover the centre business district area and residential cum institutional complex area of Chennai Metropolitan Area."
Chennai is the fourth-largest metropolitan area in India. The population of Chennai Metropolitan Area was about 7.1 million in 2001 and 8.7 million in 2011. The density in Chennai city is about 25,000/km2 and it is the largest in the world, which overtook Mumbai and Kolkata. The Project will provide the additional Metro Rail System network of approximately 9 km as an extension of Corridor 1 from Washermanpet to Wimco Nagar, in addition to approximately 45 km in the existing project from Washermanpet to Chennai Airport (Corridor 1) and Chennai Central to St. Thomas Mount (Corridor 2). The extension of Corridor 1 is connecting growing northern part of Chennai (i.e. Korrukupet, Tondiarpet, Tiruvottriyur, etc.) with Chennai's central area. The Chennai Metro is integrated with other forms of public and private transport including buses and sub-urban trains to facilitate seamless travel by commuters.
The Executing Agency for the Project is Chennai Metro Rail Limited (CMRL).
JICA has extended 150,274 million Japanese Yen (approximately INR 9,000 crores) in concessional ODA loans over 4 tranches since 2008 for the development of around 45 km metro rail system in Chennai. By adding this loan, the cumulative loan amount for Chennai Metro Project currently amounts to 183,595 million Japanese Yen (approximately INR 11,000 crores).
JICA has extended 383,314 million Japanese Yen (approximately. INR 22,800 crore) in ODA loans since 1981 for all-round development in Tamil Nadu state. The initiatives facilitated by the assistance include "Tamil Nadu Investment Promotion Program" to expedite domestic and foreign investments, power transmission system enhancement across Tamil Nadu, provision for safe water supply and sewerage facilities across Tamil Nadu state, water supply enhancement and fluorosis mitigation in Dharmapuri and Krishnagiri districts, biodiversity conservation and greening across Tamil Nadu, and the Chennai Metro. JICA has also implemented technical cooperation for enhancement of Chennai port operations and Master Plan Study of Chennai-Bengaluru Industrial Corridor, among others, and extended grant aid of 1,495 million Japanese Yen (approximately. INR 90 crore) for enhancement of facilities at Institute of Child Health and Hospital for Children (ICH) in Chennai.
Location of planned Gowri Ashram station. The station will be established above the road.
Operating Rolling stock of Chennai Metro
L-R - Mr. Pankaj Kumar Bansal, IAS, Managing Director, Chennai Metro Rail Limited, Mr. Takema Sakamoto, Chief Representative, JICA India Office and Mr. S. Selvakumar, Joint Secretary , Department of Economic Affairs (DEA) at the Loan Agreement Signing of Chennai Metro Project (Phase V)
Established, by a specific law, as an independent administrative institution under the Government of Japan, the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a 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, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.