Ten crucial greenfield highway projects in northeast India are likely to get the backing of the Japanese International Cooperative Agency, from which India has sought a soft loan of Rs 15,000 crore.
"JICA has in principal agreed to fund these highway projects. The tripartite appraisal document between Indian government agencies and JICA will be signed soon," a senior government official said.
A soft loan from JICA will allow the road transport and highways ministry to access funds at 0.5 percent interest rate for a period of more than 25 years.
Of the Rs 15,000 crore the government has sought from JICA,Rs 6,000 crore is for a 400-km highway project in Mizoram between Aizwal and Tuipang, while it proposes to build a 150-km highway in Meghalya, two projects in Manipur, and one each in Tripura, Nagaland and Assam. Construction of these highways is proposed to be undertaken by the newly-formed National Highways and Industrial Development Corporation, which has been mandated to undertake highway expansion work in India's hilly states.
The company, in which Japan Bank for International Cooperation will hold 50 percent equity on behalf of Japan, will give long term loan (30-40 years) for infrastructure projects in India at an interest rate of 0.5 percent.