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India secures INR 4,649 crores loan from Japan for Delhi Metro Phase 4 project

    Ji-Yu Doko
    By Ji-Yu Doko Replies (5)

    Japan provides loan for Delhi Metro Phase 4 project

    JICA extends ODA loan of INR 4,649 crores for Delhi Mass Rapid Transport System Project (Phase 4 Additional Corridors)

    Enhancing Urban Mobility in Delhi by Expanding the Metro Network to Reduce Congestion, Pollution, and Travel Time

    New Delhi, 27 March 2025: Japan International Cooperation Agency (JICA) has signed a loan agreement amounting to 79,726 million Japanese Yen (approximately INR 4,649 crores) (part of a total project cost of 298,358 million Japanese Yen) for the Delhi Mass Rapid Transport System Project (Phase 4 Additional Corridors) (I).

    This project aims to enhance urban mobility in the National Capital Region (NCR) of Delhi by expanding the Delhi Metro network through the construction of additional corridors. With Delhi facing severe traffic congestion, high air pollution levels, and increasing travel demand, this initiative will help improve public transportation accessibility, reduce automobile dependency, and contribute to a sustainable urban environment. The ODA loan agreement was signed between Ms. Manisha Sinha, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. TAKEUCHI Takuro, Chief Representative of JICA India.

    Commenting on the occasion, Mr. TAKEUCHI Takuro, Chief Representative of JICA India, stated, “The rapid increase in urbanization and vehicle ownership in Delhi has led to severe traffic congestion and environmental challenges. The expansion of the Delhi Metro network is a critical step toward addressing these issues by providing a reliable, efficient, and eco-friendly mass transit solution. JICA remains committed to supporting India's efforts in developing sustainable urban infrastructure, and this project will contribute significantly to improving the quality of life for Delhi’s residents.”

    The project involves the expansion of the Delhi Metro network with the construction of approximately 47 km of new metro corridors, including extensions of Line 1 and Line 5, and the development of a new Line 11. It includes the construction of 39 new metro stations, comprising 9 underground, 1 at-grade, and 29 elevated stations, along with a new metro depot. The initiative will also introduce advanced electrical, signalling, and communication systems, along with automatic fare collection systems to enhance passenger experience. Additionally, 178 new metro cars will be procured to support increased network capacity. To ensure efficient execution, the project will include consulting services for design review, construction supervision, and technology transfer, strengthening local expertise in metro operations and infrastructure management.

    The project is expected to directly benefit approximately 400,000 daily commuters by 2031, while indirectly improving connectivity for over 17 million residents in the Delhi NCR region. By reducing traffic congestion, enhancing accessibility, and lowering vehicular emissions, the project will contribute to Delhi’s long-term urban sustainability goals.

    The Delhi Metro Rail Corporation (DMRC) will be the executing agency, responsible for implementing, operating, and maintaining the metro network upon completion.

    This initiative aligns with India’s "Delhi Master Plan 2021" and Japan’s Development Cooperation Policy for India, which emphasizes enhancing connectivity and promoting low-carbon urban transport solutions. It also supports global sustainability goals by reducing CO2 emissions by approximately 26,550 tons per year through a shift from road to rail transport.

    JICA has been a key partner in the development of the Delhi Metro since its inception, having previously supported Phases 1, 2, 3, and earlier Phase 4 projects through ODA loans. The agency remains committed to fostering sustainable urban development and inclusive economic growth in India.

    The figures are calculated with current exchange ratio: INR 1/- = JPY 1.71491/-

    source: JICA.

    • Ravnish Sharma
      By Ravnish Sharma

      Thank you to Japan and Japanese people.

    • A. Luthra
      By A. Luthra

      Japanese help comes with what strings? Does it mean DMRC have to import equipment, TBMs from Japan? Nobody helps without reason.

      India Times reported also on this loan but it does not clarify either any hidden agenda by the Japan government.

      https://infra.economictimes.indiatimes.com/news/urban-transportation/delhi-metro-phase-4-financial-closure-achieved-with-jica-loan-agreement/119977630

      Delhi Metro Phase 4 financial closure achieved with JICA loan agreement - ET Infra

      infra.economictimes.indiatimes.com

      DMRC Phase 4: This development advances tendering and construction activities, highlighting JICA's long-standing financial support which has significantly improved Delhi's mass transportation.

    • Rohit Agarwal
      By Rohit Agarwal

      @A. Luthra ; Hi. I am not aware of any strings attached. But if there are, I would not be surprised. It is normal in international loans to say `I give you this credit to buy my products`. Sort of export credits. But so far I know, JICA does not work like that. Japanese are little bit different than the West, the US or Europe. Japanese are not so pushy.

    • Ravnish Sharma
      By Ravnish Sharma

      @A.Luthra Maybe Japan loan conditions say we must buy tunnelling equipment from Japan. Even so. It is good that they are financing it.

      Do Germans finance any Indian projects? We buy tons of Herrenknecht tunnel boring machines? I am asking!!!

    • Ravnish Sharma
      By Ravnish Sharma

      @Rohit Agarwal 100% Agree. With foreign loans, Japan govt is not pushy like western governments. They have more strategic, long-term view, contrary to `cash-it-now` European colonialist mentality.

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