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Japan has pledged a massive 232.21-billion-yen loan, equivalent to about USD 1.55 billion in an effort to strengthen infrastructure and promote development across many sectors in India. The loan, announced by the finance ministry, will support nine crucial projects spanning key areas such as road construction, climate change mitigation, and agricultural enhancement.
The agreement, signed by Vikas Sheel, additional secretary of the Department of Economic Affairs, and Suzuki Hiroshi, Ambassador of Japan to India, solidifies the long-standing bilateral development cooperation between the two nations, which dates back to 1958.
Among the flagship projects earmarked for funding is the improvement of road connectivity in India's North-east, including the construction of the Dhubri-Phulbari bridge and the Phulbari-Goeragre section of national highway 127B. A staggering 34.54 billion yen will be allocated to the Dhubri-Phulbari bridge project, while 15.56 billion yen is designated for the Phulbari-Goeragre highway section.
Further diversifying its support, Japan will invest into critical endeavours such as the Chennai peripheral ring road and the dedicated freight corridor project, with 49.85 billion yen and 40 billion yen respectively allocated to these ventures.
The loan package also includes provisions for fostering innovation and entrepreneurship, with 23.7 billion yen earmarked for promoting startups in Telangana and 16.21 billion yen allocated for sustainable horticulture in Haryana. Additionally, 26.13 billion yen will be directed towards climate change response and ecosystem services enhancement in Rajasthan.
Notably, a portion of the loan will be utilised to establish a teaching hospital at the Nagaland Institute of Medical Sciences and Research in Kohima, with 10 billion yen allocated for this purpose. Furthermore, 16.21 billion yen has been earmarked for improving urban water supplies in Uttarakhand.
Commenting on the strategic significance of the projects, the ministry emphasised that road connectivity initiatives in India's North-east aim to bolster infrastructure, while the Chennai peripheral ring road project seeks to alleviate traffic congestion and improve connectivity to southern Tamil Nadu.
In addition to infrastructure development, the loan will facilitate advancements in healthcare delivery, with the project in Nagaland focusing on developing tertiary-level medical services. Moreover, the fifth tranche of funding for the freight corridor project will support the construction of a dedicated freight railway system and the modernisation of the intermodal logistics system, ultimately leading to increased freight traffic.
Highlighting the broader implications of the collaboration, officials showed the strong economic partnership between India and Japan, which has seen steady progress in recent years. The exchange of notes for these transformative projects is expected to further fortify the strategic and global partnership between the two nations, paving the way for enhanced cooperation and mutual prosperity.
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