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14 April 2004 - The Japan Bank for International Cooperation (JBIC) has signed 8 ODA loan agreements totalling 125.004 bn yen (approximately $ 1.18bn) with the Government of India.
Thirty-five per cent of India's population live in absolute poverty, on less than one dollar per day, and there is an enormous development need, particularly for infrastructure development. Given the size of the country and its population, environmental problems such as lack of water resources and air pollution have a significant impact on global issues. The ODA loan agreements signed this year will therefore support economic infrastructure development, poverty reduction and environmental improvement and protection.
Three out of the total eight projects are power projects, which aim to reduce power shortages in the country. The Purulia Pumped Storage Project (II) will increase the peak-hour power supply capacity in eastern India, particularly in the state of West Bengal. It will construct a pumped storage power plant with a capacity of 900 MW, which will help alleviate power shortage. The Dhauliganga Hydroelectric Power Plan Construction Project (III) aims at narrowing the supply-demand gap in northern India by constructing a power plant with a capacity of 280 MW in Uttaranchal, near the border with Nepal. Finally, the Umiam Stage II Hydro Power Station Renovation and Modernisation Project will renovate an already existing power plant in the state of Meghalaya in northeastern India. As a result of these three projects and the increased power supply generated, there will be a boost in industrial activities, an increase in employment and an improvement of living conditions in local communities.
The ODA loan also focuses on developing transport infrastructure. Part of the loan will go to the Delhi Mass Rapid Transport System Project (V), which will construct a 62 km railway, the country's first mass rapid transit system. Once open, the system is expected to transport 2 250 000 passengers daily and will reduce traffic congestion and vehicle emissions.
In addition, the ODA loans will improve agriculture, irrigation and water supply systems. The Rengali Irrigation Project (II) aims to increase agricultural production by constructing new irrigation facilities. This will benefit an area of approximately 30 000 ha in the state of Orissa, thereby boosting the income of some 40 000 farming households. The Kurnool Cuddapah Canal Modernisation Project (II) will improve water efficiency and agricultural production by upgrading the aging irrigation systems in the state of Andhra Pradesh. At present, approximately 50 000 ha are irrigated out of a planned 110 000 ha area. Both these projects also plan to collaborate with experts and NGOs to strengthen the capacities of organisations set up by state governments to organise irrigation associations.
In Haryana, the Integrated Natural Resource Management and Poverty Reduction Project focuses on the afforestation of approximately 50 000 ha. Water and soil conservation projects, poverty reduction activities, technical assistance and institutional capacity building in 800 villages are also part of the project. This is expected to create employment, increase income through the acquisition of income-generating skills, increase production of livestock farming and improve nutrition by securing access to water.
Finally, the Bisalpur Jaipur Water Supply Project will construct a water supply system. This will entail bringing water from a new source to Jaipur, the capital of Rajasthan state. A transmission system for water intake and purification and a transfer system for water supply and distribution facilities will be built. The project, co-financed with the Asian Development Bank, is expected to further public health and living standards by improving the quality of water in Jaipur city and its vicinity. It will reduce the use of groundwater, on which the city is almost entirely dependent, and will support efforts to reform the water services sector, such as increasing efficiency in managing water supply projects and improving water tariffs in Rajasthan.
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