Japan pledges soft loan of over Rs 3,460 cr to India

Japan pledges soft loan of over Rs 3,460 crore to help India deal with Covid-19 pandemic

Tokyo will also support New Delhi procure Oxygen Concentrators to help treat critical patient infected with coronavirus

Representative image. Credit: iStock

Japan on Monday pledged a soft loan of over Rs 3460 crore and another grant of Rs 69 crore to help India deal with the Covid-19 pandemic.

The soft loan will support reforms in the health sector in addition to controlling the spread of the Covid-19 pandemic in India, the Embassy of Japan in New Delhi stated. Japan’s grant aid will help the Government of India procure oxygen concentrators for treatment of critical Covid-19 patients in the hospitals.

Tokyo’s envoy to New Delhi, Satoshi Suzuki, exchanged notes with C S Mohapatra, additional secretary in the Ministry of Finance of the Government of India, pledging the loan on behalf of the Japanese Government at an interest rate of 0.01% per annum.

“This financial support will support the implementation of health and medical policy by the Government of India and will lead to the development of hospitals equipped with ICUs and infection prevention and management facilities, which are undersupplied in India,” the Embassy of Japan in New Delhi stated. “It is also expected to lead to the enhancement of telemedicine using digital technology in numerous villages across India.”

Japan expressed hope that its “Covid-19 Crisis Response Emergency Support Loan” to India would contribute to the recovery and stability of the society and economy as well as to sustainable development of the country, in addition to controlling the pandemic.  

The loan has a redemption period of 15 years with a grace period of four years.

Suzuki and Mohapatra on Monday also exchanged notes on Japan’s grant aid under Official Development Assistance to support procuring oxygen concentrators for hospitals in India.

“This programme will provide Oxygen Generators to the Government of India. (The) Oxygen Generators can be employed for the treatment of COVID-19 patients under critical conditions,” the Embassy of Japan in New Delhi stated. “This programme will lead to the strengthening of India’s infectious disease countermeasures, as well as her health and medical systems.”