On March 11th, the Japan International Cooperation Agency (JICA) signed a loan agreement with India Infrastructure Finance Company Limited (IIFCL) in New Delhi to provide up to JPY 50 billion (EUR 398 million) for “PPP Infrastructure Financing Project.”
JICA’s loan will allow IIFCL to supply long-term funds for infrastructure development. This project promotes development of infrastructure by PPP and economic development through more use of private funds in India. Infrastructure development in India requires huge funds, whereas the Government of India has limited financial source. Therefore, private finance through public-private partnership (PPP) infrastructure projects has been proactively promoted by the Government of India, leading to the world’s largest PPP market at present.
According to Indian Railway Minister Suresh Prabhu, Indian Railways (IR) is planning to invest USD 142 billion over the next five years, and intends to double the investment in the next five-year cycle.
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