JICA extends Rs 2,470 cr loan for Chennai Peripheral Ring Road Project

Japan International Cooperation Agency (JICA) has signed an agreement with the Government of India to provide Official Development Assistance (ODA) Loan of 40,074 million Japanese Yen (approximately INR 2,470 Crore) for Chennai Peripheral Ring Road Project (Phase 1). The Chennai Peripheral Ring Road is placed as one of the priority projects in the “Comprehensive Integrated Master Plan for Chennai-Bengaluru Industrial Corridor (2015)” based on agreement between Government of Japan and Government of India.

According to a statement, the main objective of the Project is to ease the burden of increasing vehicular traffic in the Chennai Metropolitan area by constructing the Chennai Peripheral Ring Road and promote economic development in the region by improving connectivity with other National Highways and facilitating access to the Ennore Port.

The project also includes installation of Toll Management System and Highway Traffic Management System, which will enhance safety, efficiency and comfort of travel on the Chennai Peripheral Ring Road by collecting, processing and disseminating accurate and timely road traffic related information to the road users.

The ODA loan agreement was signed between Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs (DEA), Ministry of Finance, Government of India and Mr. Katsuo Matsumoto, Chief Representative, JICA India.

Speaking on the occasion, Katsuo Matsumoto, Chief Representative, JICA India said, “The traffic volume in Chennai has been increasing steeply with rapidly growing urbanization, resulting in continuous severe traffic congestions thereby, causing a bottle neck for business activities. Section 1 of Chennai Peripheral Ring Road (24.52km in total) consists of the Northern Port Access Road (Ennore Port to Thatchur), which is the northern part of the planned Chennai Peripheral Ring Road, is the target section of this project. Chennai metropolitan area accommodates lots of industrial companies and factories supported by its location, namely, critical cross-point for road as well as marine transportation for importing/exporting industrial goods and materials from/to other cities in India and South-East Asia. We understand that the project will act as a “Growth Enabler” and help to mitigate traffic congestion and improve industrial development in Chennai.”

The Highways and Minor Ports Department (HMPD), Government of Tamil Nadu is the Executing Agency of the Project. Since 1st ODA loan provision in 1981, JICA has made our commitment of ODA loan provision for 26 projects in Tamil Nadu state, which amount to about 592 billion Japanese Yen. JICA has supported development efforts of Tamil Nadu state in various fields such as transportation including Metro, Road and Port, health, forestry, water and power supply, and business environment improvement.