India-Japan partnership: Japanese ODA loan supports urban transport, health and agriculture

New Delhi: The Government of Japan has pledged an Official Development Assistance (ODA) loan of JPY 275.858 billion (around Rs 16,420 crore) to India to support four major development projects in urban transport, healthcare, and agriculture, the Ministry of Finance announced on Friday.

The funding will benefit key infrastructure and development initiatives in states including Karnataka, Maharashtra, and Punjab.

A significant portion of the loan is earmarked for expanding metro rail networks in major cities. The Bengaluru Metro Rail Project (Phase 3) will receive JPY 102.480 billion to enhance urban transport, reduce traffic congestion, and improve connectivity, while promoting public transport to lower pollution levels.

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“This investment will promote regional economic development, enhance the urban environment, and contribute to climate change mitigation by easing traffic congestion and reducing pollution from motor vehicles,” the ministry said.

Similarly, the Mumbai Metro Line 11 Project will get JPY 92.400 billion to extend the metro network in Mumbai, aiming to improve urban mobility, manage rising traffic demand, and support environmental sustainability by curbing vehicle emissions.

In the healthcare sector, JPY 62.294 billion has been allocated to strengthen tertiary healthcare and medical education in Maharashtra. The project focuses on building hospitals, medical colleges, and nursing schools to expand access to quality healthcare and advance India’s goal of universal health coverage.

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For agriculture, JPY 18.684 billion will support sustainable horticulture in Punjab, assisting farmers in shifting to high-value crops, improving infrastructure, and strengthening the agricultural value chain to boost incomes while promoting environmentally sustainable farming.

India and Japan share a long-standing development partnership dating back to 1958, with economic cooperation remaining a cornerstone of their strategic relationship. This latest ODA loan further reinforces the India-Japan strategic and global partnership.

IANS