Japan announces 2bn $ loan to build Indian metro rail

Japanese Prime Minister Shinzo Abe, who is currently on a visit to India, has announced a loan of USD 2 billion for Indian Metro rail services, state run All India Radio (AIR) reported Sunday. The report said that Abe made the announcement after a summit meeting with Prime Minister Manmohan Singh in New Delhi. "The metro projects have been financially assisted by Japan International Cooperation Agency. The agency had already funded Phase-I and Phase-II of the Metro network," the report added. According to Indian foreign ministry, Japan has been extending Overseas Development Assistance through loans and grants, and currently there are 66 projects which are underway in India from using those loans and grants. Currently Japan ranks fourth in terms of investments into India and it is estimated during the period of April 2000 to 2013, approximately US 15 billion were invested from Japan into India through FDI and equity flows, the ministry adds.