Updated: November 28, 2015 5:51:38 am
In a huge boost to the Rs 10,700-crore Ahmedabad metro rail project, Japan on Friday committed a loan of Rs 4,456 crore for the project.
Official notes committing to the Official Development Assistance (ODA) loan were exchanged between S Selvakumar, joint secretary, Department of Economic Affairs, Government of India and Yutaka Kikuta, Charge d’ Affaires, Embassy of Japan to India. Under this agreement, the fourth phase of Chennai metro will also get a loan of Rs 1,080 crore.
The Metro-Link Express for Gandhinagar and Ahmedabad (MEGA), a special-purpose-vehicle (SPV) that is in-charge of implementing the Ahmedabad metro project had sought for a Rs 5,900 crore loan from the Japan International Co-operation Agency (JICA), a Japanese body providing financial assistance for several metro projects in India.
A statement from MEGA which is a 50:50 venture of the Central government and Gujarat stated Friday, “The Government of India has today signed a confirmation agreement with Government of Japan 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 year.”
Speaking to The Indian Express about Friday’s development, IP Gautam, the managing director of MEGA, who was present on the occasion said, “This is a very important development for the project. With this agreement, the money will come to us through JICA.”
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