Japan offers $1.5b aid for DMIC project

Tags: DMIC, Japan, Economy
The Japanese government has offered a special loan of $1.5 billion for Delhi-Mumbai Industrial Corridor (DMIC) project for a period of 40 years.

"Government of Japan has offered a special facility of $1.5 billion official development assistance (ODA) for DMICDC projects over and above the regular ODA," Minister of State for Finance Namo Narain Meena has informed Parliament.

The special term loan by the Japanese government include certain conditions such as preference to a Japanese company for goods, services and consulting contracts.

Also, as per the conditions, not less than 30 per cent of the total prices of contracts (excluding consulting services) shall be accounted for by either goods from Japan and services provided by a Japanese company or goods from Japan only, depending on the nature of the project.

"Four projects of DMICDC having a project cost of Rs 6,459.37 crore (about $1.04 billion) have already been included in the Special Rolling Plan for the $1.5 billion ODA facility and shared with government of Japan," the Minister has said in a written reply to Lok Sabha.

The government of Japan offers both untied and tied loans under its ODA.

DMIDC is a Dedicated Freight Corridor between Delhi and Mumbai, covering an overall length of 1,483 kilometre and passing through the states of Uttar Pradesh, National Capital Region (NCR) of Delhi; Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the NCR of Delhi and Jawaharlal Nehru Port near Mumbai.

This Dedicated Freight Corridor offers high-speed connectivity for high axle load wagons (25 tonne) of double stacked container trains supported by high power locomotives.

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