The metro rail project for Ahmedabad received a boost when Japan International Cooperation Agency (JICA) signed an agreement recently with the Government of India to provide 82.434 billion Japanese Yen (approx. INR 4870 crore) Official Development Assistance (ODA) loan for the project. The ODA loan's conditions are very concessional, i.e. 1.4% of interest rate and 30 years of repayment period (including 10 years of grace period). The assistance from JICA will facilitate construction of underground and elevated rail-tracks, electrical, telecommunication and signalling systems and procurement of the trains. The cumulative loan amount provided by JICA for metro projects in India (including Delhi, Chennai, Bengaluru, Kolkata and Mumbai Metro’s) has exceeded 1 trillion Japanese Yen (approximately Rs 59,071 crore).
The agreement was signed between Takema SAKAMOTO, Chief Representative, JICA India Office and S. Selvakumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Govt. of India at Ministry of Finance.
Metro Link Express for Gandhinagar and Ahmedabad Company Ltd. (MEGA) is the executing agency for this project which would cover approx. 38 km in Ahmedabad from Motera Stadium to APMC (North-South Corridor) and Thaltej to Vastral Gaam (East-West Corridor). It will cover the central business district area, academic area, residential area and institutional complex area of Ahmedabad Metropolitan Area. The complete commercial operation is expected to start from 2020.