Loan agreement includes 30 billion yen loan to Small Industries Development Bank of India (SIDBI), 19.8 billion loan to Bangalore Metro Rail Project and another 30 billion yen financial assistance for new and renewable energy development project.
The objective of these loan is to improving the investment climate by increasing power supply and leveraging Japanese experience to support the introduction of new and renewable energy as well as energy-saving projects, JICA said in a statement.
Besides, loan given to the MSME sector is for promotion of energy saving in the sector in India by providing financial assistance through SIDBI.
It will help in contributing to environmental improvement, sustainable economic development in the country and mitigation of global climate change, it said.
The agreement was signed today by Alok Prasad, Indian Ambassador to Japan and Sadako Ogato, President, Japan International Cooperation Agency (JICA) in Tokyo.
The Government of India has set faster and inclusive growth as a goal, aiming to increase the size of the overall economic pie while ensuring that everyone will be able to enjoy benefits of the inclusive growth, it said.
To accomplish these goals, major impediments must be resolved for improving infrastructures, such as power, transportation, and communications, it said.