Japan offers $1.5 billion aid for DMIC project


Source:  http://www.thehindubusinessline.com

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.

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

The special term loan by Japan includes 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. More info