India signs loan agreements with JICA
The Government of Japan has committed Official Development Assistance (ODA) loan of JPY 275.858 billion (approx. Rs.16,420 crores) to India for four projects in the sectors of Urban Transport, Health and Agriculture which are to be implemented in Punjab, Karnataka and Maharashtra.
The Notes related to loan were exchanged on 24 Mar 2026 between the Joint Secretary, Department of Economic Affairs, Ministry of Finance, Alok Tiwari, and the ambassador of Japan to India, Keiichi Ono, the Finance Ministry said on 27 Mar.
The projects include, “Bengaluru Metro Rail Project (Phase 3) (I)” (JPY 102.480 billion), “Mumbai Metro Line 11 Project (I)” (JPY 92.400 billion), “Project for Strengthening Tertiary Healthcare Delivery, Medical Education System & Nursing Education System in Maharashtra (I)” (JPY 62.294 billion) and “Project for Promoting Sustainable Horticulture in Punjab” (JPY 18.684 billion).
Loan agreements have also been signed between the Indian Governments and the Japan International Cooperation Agency (JICA).
The Bengaluru Metro Rail Project (Phase 3) (I) aims to cope with the increase of traffic demand in Bengaluru Metropolitan Region, by expanding the mass rapid transportation system. This shall promote regional economic development, improve urban environment and eventually will mitigate climate change, through relief of traffic congestion and decrease of pollution caused by increasing motor vehicles.
Mumbai Metro Line 11 Project (I) aims to cope with the increase of traffic demand in Mumbai by expanding the mass rapid transportation system, thereby promoting regional economic development, improving urban environment and eventually mitigating climate change, through relief of traffic congestion and decrease of pollution caused by increasing motor vehicles.
Project for Strengthening Tertiary Healthcare Delivery, Medical Education System & Nursing Education System in Maharashtra (I) will aim to improve access and quality of medical care in the state of Maharashtra by strengthening the healthcare system through the construction of tertiary care facilities, college, hospitals, medical colleges, and nursing schools. This shall further contribute towards the promotion of Universal Health Coverage (UHC) in India.
Project for Promoting Sustainable Horticulture in Punjab aims to promote sustainable horticulture and improve farmer’s income by diversifying into high-value horticulture crops, and infrastructure development for stronger value chain and capacity development. This shall leverage environmental conservation and sustainable socio-economic development in Punjab.
India and Japan have had a long and fruitful history of bilateral development cooperation since 1958. Economic Cooperation, a key pillar of India-Japan relations has steadily progressed in the last few years. This further consolidates and strengthens the Strategic and Global Partnership between India and Japan, the Ministry said. fiinews.com
