Loan for K-Rail is being given by Japanese bank JICA, not companies: K-Rail Development Corporation

THIRUVANANTHAPURAM: The K Rail Development Corporation has stated that the loan from JICA (Japan International Corporation Agency) for K-Rail is only 29 per cent of the project cost and that the loan is being given by a Japanese bank called JICA, not any other company. K-Rail officials said they intend to borrow from other international financial institutions such as ADB and AIIB, and that the project will be free of corruption and favouritism.

The press release states that the project loans from JICA are based on a bilateral agreement between the Government of India and the Government of Japan. The loan from JICA is only Rs 18,892.5 crore. It should be noted that earlier loans from JICA for the high-speed rail corridor were originally intended to cover about 80 per cent of the project cost. The statement added that the claim that Silver Line is being built on a standard gauge is to borrow from Japan is false and that most countries are using the standard gauge for their high-speed lines.