Japan to sanction $2.2-bn loan for India infra projects

Written by fe Bureau | New Delhi | Updated: Nov 21 2012, 07:36am hrs
Japan will soon sanction a loan of 184 billion yen ($2.26 billion) for infrastructure projects in India, including the ambitious dedicated freight corridor project the Indian Railways is building connecting Punjab and West Bengal on the East and UP and Maharashtra on the West.

A part of the loan would go to projects in South India.

Sources close to the development said Japanese Prime Minister Yoshihiko Noda has informed Prime Minister Manmohan Singh that about the loan sanction at their meeting here ahead of the East Asia summit.

Both prime ministers also discussed bilateral issues, including cooperation between their respective naval forces and coast guards. Railways is constructing the 3,300-km project under through the Dedicated Rail Corridor Corporation of India, a special purpose vehicle.

The Eastern Corridor, starting from Ludhiana in Punjab will pass through the states of Haryana, Uttar Pradesh, Bihar and terminate at Dankuni in West Bengal. The Western Corridor will traverse the distance from Dadri to Mumbai, passing through the states of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.