Ten crucial greenfield highway projects in northeast India are likely to get the backing of the Japanese International Cooperative Agency, from which India has sought a soft loan of Rs 15,000 crore.

"JICA has in principal agreed to fund these highway projects. The tripartite appraisal document between Indian government agencies and JICA will be signed soon," a senior government official said.

A soft loan from JICA will allow the road transport and highways ministry to access funds at 0.5% interest rate for a period of more than 25 years.

The government plans to undertake construction of 1,000 kilometres of highway network in the northeast, a region that is yet to be connected properly with the country's highway network although it is of strategic importance. "Detailed project reports for all these have already been approved by JICA," the official said, requesting not to be identified.

Source: PTI

Ten crucial greenfield highway projects in northeast India are likely to get the backing of the Japanese International Cooperative Agency, from which India has sought a soft loan of Rs 15,000 crore. "JICA has in principal agreed to fund these highway projects. The tripartite appraisal document between Indian government agencies and JICA will be signed soon," a senior government official said.

A soft loan from JICA will allow the road transport and highways ministry to access funds at 0.5% interest rate for a period of more than 25 years.The government plans to undertake construction of 1,000 kilometres of highway network in the northeast, a region that is yet to be connected properly with the country's highway network although it is of strategic importance. "Detailed project reports for all these have already been approved by JICA," the official said, requesting not to be identified.

Of the Rs 15,000 crore the government has sought from JICA,Rs 6,000 crore is for a 400-km highway project in Mizoram between Aizwal and Tuipang, while it proposes to build a 150-km highway in Meghalya, two projects in Manipur, and one each in Tripura, Nagaland and Assam. Construction of these highways is proposed to be undertaken by the newly-formed National Highways and Industrial Development Corporation, which has been mandated to undertake highway expansion work in India's hilly states.

The government has also sought a loan from Asian Development Bank for a 52-km link between Imphal and Myanmar. Talks with ADB for a Rs 24,000 bridge connecting India with Sri Lanka are also on. However, that discussion is still at a preliminary stage. Besides, India is planning to set up an infrastructure financing company in partnership with Japan. As per the proposal, the company will primarily extend soft loans for road projects and will try to achieve a loan book of Rs 2 lakh crore in the coming years.

The company, in which Japan Bank for International Cooperation will hold 50% equity on behalf of Japan, will give longterm loan (30-40 years) for infrastructure projects in India at an interest rate of 0.5%.

Souce: The Economic Times