New Delhi

The Notes were exchanged here today between Mr. S. Selvakumar, Joint Secretary, Department of Economic Affairs, Government of India and Mr.Yutaka Kikuta, Charge d’ Affaires a.i., Embassy of Japan to India.

The Government of Japan has committed Official Development Assistance (ODA) loan of an amount of JPY 19.981 billion (= approx. Rs.1080 crore) for the Chennai Metro Rail Project (IV) and JPY 82.434 billion (=approx. Rs.4456 Crore) for the Ahmedabad Metro Project.

India and Japan have had mutually beneficial economic development cooperation since 1958. In the last few years, the economic cooperation between India and Japan has strengthened and grown into strategic partnership. With general political consensus and popular support for the greater cooperation between India and Japan, the partnership is poised for a great future.

Exchange Rate: Re.1 = Yen 1.85.

A note released by Gujarat government adds that JICA and Government of India have signed agreement for 30 years soft loan of Rs 5,968 crore out of total Rs 10,733 crore project cost of phase-1 of Ahmedabad Metro rail project. The loan is unconditional and effective interest rate is going to be 1.4%. A decision for JICA(Japan International Cooperation Agency) assistance to Ahmedabad Metro project was taken during Prime Minister Narendra Modi’s Japan visit. Union Cabinet meeting chaired by Prime Minister Shri Narendra Modi in October 2014had approved construction for Rs 10,773 crore North-South corridor of Ahmedabad Metro running through 36 kms between APMC and Motera in north-south and Thaltej and Vastral in east-west direction. For financial resources, a pact was signed in July 2015 between Government of India and JICA. Today the commitment and terms and conditions for Rs 5,968 crore loan are finalized in Delhi. As per this , JICA will provide Rs 5,968 crore loan in two phases In 2016-17 Rs 4456 crore and later in year 2018 Rs 1512 crore as per the need. If airport connectivity is achieved in first phase expansion, then the loan amount will be increased as per a condition in agreement.

Meanwhile, Gujarat Chief Minister Anandiben Patel has thanked Prime Minister Shri Narendra Modi for continuous support to Ahmedabad Metro Project in reference to agreement signed today.

Chief Minister said the agreement signed today will expedite the ongoing work of MEGA. it will give major boost to Ahmedabad Metro Project(MEGA), and I am glad that government of Japan, Government of India have signed confirmation agreement to fund MEGA Phase 1.

Full text of Gujarat govt note:

The Government of Japan has today signed a Confirmation Agreement with Government of India to fund Ahmedabad Metro Project Phase – 1 to the tune of Rs. 5,968 crore and the first trench of Rs. 4,456 crore is to be released in the next financial years.

The Confirmation Agreement signed between Mr. S. Selvakumar, Joint Secretary, Department of Economic affairs, Government of India and Mr. Yutaka Kikuta, Charge d’ Affaires a.i., Embassy of Japan to India in the presence of Shri I. P. Gaugam, Managing Director of MEGA (Metro- Link Express for Gandhinagar and Ahmedabad) at New Delhi.

It is stated here that during the visit of Hon’ble Prime Minister of India to Japan, the Government of Japan decided to fund Ahmedabad Metro Project Phase – 1 (Total project cost Rs. 10,773 crore) through Japan International Cooperation Agency (JICA).

In pursuance to the same, JICA and Ahmedabad Metro Company (MEGA) had signed an MoU on 24th July, 2015 in the presence of the Ministry of Urban Development & DEA, Government of India in New Delhi.

After signing the agreement, Shri I.P. Gautam said that Ahmedabad – Gandhinagar Metro rail project is being promoted with the objective of providing safe, fast and eco-friendly transportation services to the public at affordable rates while simultaneously reducing the congestion on the roads. The metro rail project will promote integration with AMTS, BRTS, Railways and other modes of public transit system.

MEGA is committed to deliver World Class state-of-art technology most cost efficient metro within the shortest time span possible in the country. The proposed metro will have majorly elevated structure, ballast-less tracks, air-conditioned coaches, GPS based rail tracking system, train destination indicators & stations with support infrastructure like automated fare collection, parking facilities, etc., he added

– DeshGujarat