India will be receiving a soft loan of Rs 6,916 crore from Japan this fiscal for 11 projects in power, forestry, urban transport and port sectors.
"We are happy to extend official development assistance amounting to Yen 1,84,893 million (Rs 6,916 crore) to India, an increase of 18.93 per cent over Rs 5,910 crore assistance given last year," Japanese Ambassador to India Yasukuni Enoki said after the agreement for the loan was inked in the capital today.
Finance Ministry Joint Secretary (bilateral cooperation) Sanjay Krishna signed the document on India's behalf.
India will pay 1.3 per cent annual interest on the loan for the general projects, except for Visakhapatnam port expansion project and Bangalore distribution upgradation project for which interest rate would be 0.75 per cent a year.
The repayment period will be 30 years for the general projects and 15 years for other projects.
Enoki said, India was the biggest bilateral loan recipient from Japan, which has committed Rs 92,622 crore assistance as of current fiscal.
Appreciating the implementation of Delhi Metro project with Japanese assistance, the ambassador said it was a shining example of bilateral cooperation.
Following Prime Minister Manmohan Singh's visit to Japan, he said Tokyo will also extend financial assistance for the Delhi-Mumbai freight and industrial corridor projects.