ODA Loan to India

March 29, 2001

The Government of Japan has decided to extend an ODA loan of up to a total of 18,926 million yen to the Government of India for ongoing projects, i.e. the Simhadri Thermal Power Station Project (II) and the Delhi Mass Rapid Transport System Project (II). Notes to this effect were exchanged on March 29 (Thu) in New Delhi between H.E. Mr. Hiroshi Hirabayashi, Japanese Ambassador to India, and Mr. Ajit Kumar, Finance Secretary to the Government of India.

The project name and the amount of the loan is as follows:
(1) Simhadri Thermal Power Station Project (II): up to 12,194 million yen
Delhi Mass Rapid Transport System Project (II): up to 6,732 million yen
Total: up to 18,926 million yen

(2) Terms and conditions of the loan:
1. Interest rate: 1.8% per annum
2. Repayment period: 30 years (including a 10-year grace period)
3. Procurement method: general untied
These projects are already being implemented with the ODA loan to India provided in FY1996 for Phase I. Without an additional funding to the loans for phase I, these projects may shortly come to a halt. If this occurs, the construction already done will be wasted and great losses may be caused to enterprises and other organizations involved in the projects. The Government of Japan has therefore decided to extend a further ODA loan to complete the projects.
Following the nuclear tests conducted by India in May 1998, Japan announced to freeze loan for new projects to India as part of the measures according to the ODA Charter. Projects which are already in progress are, however, exempt from the measures. The forthcoming ODA loan, which will be additionally extended for the ongoing projects, will neither ease nor change the measures that have been taken by Japan.

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