Japan extends Rs 1,345 crore loan to India

New Delhi, Aug 14 (UNI) The Japanese Government today extended a package of official development assistance (ODA) to India in the form of soft loans worth Rs 1,345 crore for completing two projects in Maharashtra and Goa.

The projects include strengthening the Maharashtra Transmission System and Goa Water Supply and Sewerage system for which the Japan Bank for International Development (JBIC) has sanctioned loans of Rs 570 and Rs 775 respectively.

The main objective of Japanese loan assistance is to support India in establishing physical infrastructure to boost and sustain economic growth, a statement said.

In addition, Japanese assistance seeks to support India's efforts to alleviate poverty.

The Maharashtra project getting a loan assistance of Rs 570 crore, at the rate of interest of 0.75 per cent per annum will have to be repaid in 15 years including grace period of five years while the Goa project bagging a loan amount of 775 crore, at 1.3 per cent per annum will have to be repaid in 30 years including the grace period of 10 years.

The Exchange of Notes to formalise the agreement to this effect was signed today between Yasukuni Enoki, Ambassador of Japan to India and Kumar Sanjay Krishna, Joint Secretary, Ministry of Finance.

Since last four years, India has been the top recipient of Japanese soft loan assistance.

In addition to paying efforts regarding the amount of soft loan, the Japanese Government has also introduced a new ''Double-Tracked Process'' in the loan procedure, so that India could receive loan package more promptly than ever.

UNI