Chennai: Japan International Cooperation Agency (JICA) on Friday provided a loan of Rs 1,180 crore to Chennai Metro Rail Ltd (CMRL). An agreement was signed in this regard between JICA India Office and the ministry of finance.
The official development assistance (ODA) loan has been provided at 1.4% interest rate and 30 years of repayment period, including 10 years of grace period. The assistance from JICA will facilitate construction of underground tunnels, rail-tracks, electrical, telecommunication and signaling systems, procurement of the trains and consultancy service.
JICA had earlier provided approximately Rs 7,697 crore in concessional ODA loans over three tranches since 2008 for development of the 45 km metro rail system in Chennai. With the loan sanction on Friday, the cumulative loan amount for Chennai Metro Project becomes approximately Rs 8,877 crore.