Japan to fund mass rapid transit systems in Gujarat, Haryana

By Aashi Sehrawat

Funds from a Japanese government loan will soon be utilised for the first time in the $100 billion, Delhi-Mumbai Industrial Corridor (DMIC) project. So far, the mega-project was being developed only with the Indian government’s financial assistance.

The JICA is the Japanese governmental agency in charge of implementation of Japan’s Official Development Assistance (ODA) — with the main objective of ‘promoting economic development and welfare in developing countries. The interest rate of the loan will be kept ‘very low’ (at 0.1%) having a long repayment period (at 40 years, including a 10-year grace period).

The DMIC spans six States (Uttar Pradesh, Delhi National Capital Region, Haryana, Rajasthan, Gujarat and Maharashtra). It uses ‘the 1,500-km-long, high-capacity western Dedicated Railway Freight Corridor (DFC) as the backbone’ and aims to be ‘a global manufacturing and investment destination’.

A soft loan (with concessional conditions) to the tune of $4.5 billion to be extended by the Japan International Cooperation Agency (JICA), will shortly be utilised to develop two Mass Rapid Transit Systems (MRTS) — one each in Gujarat and Haryana — that will be part of the DMIC.

According to JICA, its “ODA to India started in 1958” and so far around “₹2.75 lakh crore in ODA loans have been committed for development across various sectors.” As per JICA, it is “India’s biggest bilateral donor.”

Incidentally, a JICA loan worth ₹88,000 crore, on similar terms , will be used to build the ₹1.08 lakh crore Ahmedabad-Mumbai bullet train project. JICA loans/assistance are being used to facilitate development of Metro rail networks including in Delhi and the Western DFC. The MRTS in Gujarat will be ‘at grade’ (ground level) and link Ahmedabad to the Dholera Special Investment Region (DSIR).

The sources said the Detailed Project Report (DPR) for the MRTS was ready and land was being acquired. The MRTS in Haryana will be an ‘elevated’ one and will connect Gurgaon and Bawal (part of the Manesar-Bawal Investment Region in the DMIC).

The land has been acquired and the DPR has been finalised, officials said, adding that the MRTS has been included in the JICA ‘Rolling Plan’ for the ODA loan. The Department of Economic Affairs will soon ask JICA to work on preparatory surveys for the project, they said. The length of these two MRTS projects will be 85 km each.