Chennai: Japan International Cooperation Agency (JICA) has extended Official Development Assistance Loan (ODA) of 33,321 million Japanese Yen (around Rs 2,000 crore) to the Chennai Metro Rail Ltd. (CMRL) for building of Mass Rapid Transport System.
The ODA loan’s conditions are very concessional, i.e. 1.4 per cent and 0.01 per cent interest rate and 30 years of repayment period (including 10 years of grace period).
This assistance from JICA will further mitigate the road traffic, traffic accidents and traffic pollution, and will eventually lead to balanced regional socio-economic development and enhancement of Chennai’s atmospheric environmental condition.
With the signing of this loan agreement for Chennai Metro Project, the cumulative loan amount provided by JICA for metro projects in India (including Delhi, Bengaluru, Kolkata, Mumbai and Ahmedabad Metro’s) exceeds 2.6 trillion Japanese Yen (around Rs 1.5 trillion).
Takema SAKAMOTO, Chief Representative, JICA India Office said, “When completed, this Project will provide improved access to public transport for the dense population comprising predominantly industrial workers to move towards the central business districts of Chennai for work. It will cover the centre business district area and residential cum institutional complex area of Chennai Metropolitan Area.”
Chennai is the fourth-largest metropolitan area in India. The population of Chennai Metropolitan Area was about 7.1 million in 2001 and 8.7 million in 2011. The density in Chennai city is about 25,000/km2 and it is the largest in the world, which overtook Mumbai and Kolkata.
The project will provide the additional Metro Rail System network of around nine kms as an extension of Corridor 1 from Washermanpet to Wimco Nagar, in addition to approximately 45 kms in the existing project from Washermanpet to Chennai Airport (Corridor 1) and Chennai Central to St. Thomas Mount (Corridor 2).
The extension of Corridor 1 is connecting growing northern part of Chennai (i.e. Korrukupet, Tondiarpet, Tiruvottriyur, etc.) with Chennai’s central area. The Chennai Metro is integrated with other forms of public and private transport including buses and sub-urban trains to facilitate seamless travel by commuters.
The Executing Agency for the Project is Chennai Metro Rail Limited (CMRL).
JICA has extended 150,274 million Japanese Yen (around Rs 9,000 crore) in concessional ODA loans over four tranches since 2008 for the development of around 45 kms metro rail system in Chennai. By adding this loan, the cumulative loan amount for Chennai Metro Project currently amounts to 183,595 million Japanese Yen (around Rs 11,000 crore).
JICA has extended 383,314 million Japanese Yen (around Rs 22,800 crore) in ODA loans since 1981 for all-round development in Tamil Nadu state.