NEW DELHI: Japan International Cooperation Agency (JICA) today signed an agreement with the government for anOfficial Development Assistance ( ODA) loan of Rs 4,700 crore (or 71 billion yen) for construction of Mumbai MetroLine III Project.
The agreement was signed by Rajesh Khullar, Joint Secretary, Department of Economic Affairs in the Finance Ministry and Shinya Ejima, Chief Representative JICA in India.
“The funds would be used for the construction of 33.5 kilometres long underground section of line 3 of Mumbai Metro. Besides the construction of the rail line, funds would be used for construction of subways, rolling stock procurement and consulting services,” JICA said in a statement.
The loan will be at a concessional interest rate of 1.4 per cent to be repaid in 30 years and another 10 year of grace period.
Mumbai Metro Rail Corporation is the executing agency of the project, which is expected to be completed by 2019.
The port city of Mumbai lacks efficient public transport system and the project is expected to help the city improve its physical transport.
“Providing for loan by JICA to this project would go a long way in addressing the major problem of urban congestion in the city of Mumbai. People spend endless hours on roads, local trains are overloaded. So when the project gets completed, this will help in considerably improving the quality of ordinary Mumbaikar just as Metro has done in Delhi,” Ejima said. More info