MP Metro projects get Rs 12,000 Cr soft loan from Japan

Bhopal: The Madhya Pradesh government claims to have obtained consent for getting a Rs 12,000-crore foreign loan for its ambitious Bhopal and Indore Metro rail projects. The funds will be available at much lower rates than those available in India.

“We last month held discussions with officials of Japan International Cooperation Agency (JICA), which will arrange funding of Rs 12,000 crore at 0.3 per cent interest for the Bhopal and Indore Metro rail projects,” said Madhya Pradesh Chief Minister Shivraj Singh Chouhan after returning from a 10-day business trip to Japan.

During this trip, representatives of as many as 50 companies met Chouhan to explore prospects of investing in Madhya Pradesh.

Chouhan said JICA would also fund Rs 1,200 crore for Madhya Pradesh Power Transmission Company and another Rs 2,000 crore for a group drinking water scheme. He added that Japan External Trade Organisation (JETRO) had agreed to promote Madhya Pradesh as a favourite destination to encourage Japanese companies to invest in the state. “(Prime Minister Narendra) Modi’s ‘Make In India’ campaign has come to fruition. Japanese and Korean companies, which barely showed interest in Indian destinations, have now committed themselves to investing in Madhya Pradesh,” Chouhan said.

Another huge investment, Chouhan further said, would come from SoftBank Ltd. Masayoshi Son, chief executive of SoftBank, has committed to funding manufacturing plants for solar power equipment, panel, etc.

“Furukawa Electric is also keen to invest in a joint venture in the state for manufacturing optical cables,” Chouhan said, adding that a high-level delegation from Japan would soon visit Madhya Pradesh and gauge potential for setting up food parks and sanitaryware manufacturing units.

The chief minister said he had also invited investors from South Korea, as Indo-Korean chambers of commerce had entered into a deal with Madhya Pradesh for promoting investment. “Samsung has shown interest in Madhya Pradesh,” Chouhan said, adding that Samsung might set up a research & development centre.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.