Bengaluru’s Namma Metro, which began as a novelty line from Baiyappanahalli to MG Road back in 2011 in its initial phase, will now be the biggest recipient of a loan from the Land of the Rising Sun. Another beneficiary of a part of the loan is the Mumbai Metro project.
According to the Centre, the Government of Japan committed an Official Development Assistance (ODA) loan of JPY 275.858 billion, amounting to around ₹16,420 crore, to India for four projects spread across Maharashtra, Karnataka and Punjab.
The single largest slice of the package, JPY 102.480 billion, goes to the Bengaluru Metro Rail Project (Phase 3), which aims to expand the IT hub’s mass rapid transit network to ease chronic traffic congestion and cut vehicular pollution. Close behind is the Mumbai Metro Line 11 Project, receiving JPY 92.400 billion to bring similar relief to Mumbai’s gridlocked commuters.
Together, these two metro projects account for nearly 71 per cent of the total ODA commitment. The loan agreements were signed earlier this week between the Government of India and the Japan International Cooperation Agency (JICA), and the notes were formally exchanged between Alok Tiwari, Joint Secretary, Department of Economic Affairs, and Keiichi Ono, Japan’s Ambassador to India.
With Japan writing one of its biggest recent cheques to India, the loan is expected to plug the infrastructure gaps not just in urban transport but also in healthcare and agriculture.
According to the Centre, JPY 62.294 billion has been earmarked for a proposed project to fund the construction of tertiary care facilities, medical colleges and nursing schools in Maharashtra.
Another JPY 18.684 billion is set out for promoting sustainable horticulture in Punjab, aimed at helping farmers diversify into crops that provide higher value and better returns.
