Japan International Cooperation Agency (JICA) has offered Official Development Assistance (ODA) loan of around Rs 2,000 crore for the fifth phase of Chennai Metro Rail Project.
According to a press release, the loan’s conditions were very concessional with an interest rate of 1.4 per cent and 0.01 per cent and 30 years of repayment period (including ten years of grace period).
This assistance from JICA would further mitigate the road traffic, traffic accidents and traffic pollution, and would eventually lead to balanced regional socio-economic development and enhancement of Chennai’s atmospheric environmental condition, it said.
The agreement was signed between Takema Sakamoto, Chief
Representative, JICA India Office and S Selvakumar, Joint Secretary, Department of Economic Affairs,Union Ministry of Finance in New Delhi.
Takema Sakamoto said “when completed, this project will provide improved access to public transport for the dense population comprising predominantly industrial workers to move towards
the central business districts of Chennai for work.”
He added: “It will cover the centre business district area and residential cum institutional complex area of Chennai Metropolitan Area”.
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