Japan to provide an Assistance of Rs. 6916 crores for FY 2006

Japan would provide loan amounting to Yen 184,893 million (Rs. 6916 crores approximately) to India as its Official Development Assistance for FY 2006. This is an increase of 18.93% over last year ODA. The loan has been provided to fund 11 (eleven) projects in power transmission, environment, forestry, water supply and sewerage, urban transport and port sectors. An Exchange of Notes to this effect took place, here today between Shri Kumar Sanjay Krishna, Joint Secretary, Ministry of Finance, Government of India and Mr. Yasukuni Enoki, Ambassador of Japan to India.

The rate of interest would be 1.3% per annum for the general projects except for Visakhapatnam Port Expansion Project and Bangalore Distribution Upgradation Project for which the rate of interest would be 0.75% per annum. The repayment period would be thirty years (including a grace period of ten years) for the general projects except for Visakhapatnam Port Expansion Project and Bangalore Distribution Upgradation Project for which the repayment period would be fifteen years (including a grace period of five years) .The rate of interest for the environment and forestry sector projects would be 0.75% per annum and the repayment period would be forty years (including a grace period of ten years)

India is the biggest bilateral loan recipient from Japan. Indo-Japan bilateral development cooperation has seen remarkable and progressive expansion in recent years. The Government of Japan provided Yen 155,458 million (equivalent to Rs. 5910 crores approximately) for projects in FY 2005. The total ODA loan commitment till FY 2006 has become Yen 2437.430 billion (Rs. 92622 crores approximately). At present, 45 projects are being implemented in India with Japanese loan assistance of Yen 678.095 billion (Rs. 25768 crores approximately).

India and Japan have had a long and fruitful history of bilateral development cooperation since 1958. This is expected to be further strengthened and broad based in future.

Source : Press Information Bureau

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