Thursday, September 17, 2009

India to avail $3.7 bn Japanese loan for rail project

Japanese loans for a rail freight corridor project

NEW DELHI: The Indian cabinet on Thursday approved availing of 177 billion rupees ($3.7 billion) of Japanese loans for a rail freight corridor project to connect northern and western industrial hubs, a minister said.

Information and Broadcasting Minister Ambika Soni said the long-term loan from Japan's Official Development Assistance (ODA) however comes with a precondition that prime contractor for the project would be Japanese firms.

The $5.4 billion freight corridor project is part of an infrastructure development plan involving an investment of $500 billion during the five-year period ending March 2012.

The cabinet decision comes a day after the railway ministry said it would not forcibly acquire land and review existing cases of such land seizures, especially from farmers.

ET

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