How is JICA transforming India's Transportation Landscape?

In the ever-evolving landscape of international cooperation and development, the Japan International Cooperation Agency (JICA) has emerged as a pivotal player in nurturing partnerships and driving progress, particularly in India. In this exclusive interview with Mr. Saito Mitsunori, the Chief Representative of JICA India, we delve into the remarkable journey of JICA's involvement in India's development, touching upon its achievements, contributions to transportation and clean energy, and its ambitious plans for a sustainable future.

Pioneering Role in India's Development

Since its inception in 1958, JICA, and its precursors, have been pivotal in fostering India's development. The agency extended its first Official Development Assistance (ODA) loan to India, marking the beginning of a significant partnership. India holds the distinction of being the first country globally to receive Japanese ODA funds. Over the years, Japan has committed a staggering 7,300 billion Japanese Yen (equivalent to approximately 4,48,000 crore Rupees) to support various sectors in India.

Today, JICA stands as India's largest bilateral aid agency, with India reciprocating as JICA's largest development partner. This mutually beneficial relationship has seen JICA's unwavering support in the form of technical cooperation projects, training for over 8,400 individuals, dispatching more than 11,000 experts, and sending over 240 volunteers to contribute their expertise.

Moreover, JICA's generosity extends to grant aid, amounting to 53 billion yen (3,200 crore Rupees), which has been judiciously utilized in constructing hospitals and iconic International Cooperation and Convention Centres, such as the one in Varanasi.

JICA's journey in India is marked by significant milestones, including its inaugural ODA loan, emergency assistance during the economic crisis of 1991, and its instrumental role in initiating the Delhi Metro project in 1997—a shining exemplar of JICA's impactful assistance.

Transforming India's Transportation Landscape

JICA's four-decade-long contribution to India's transportation sector has been nothing short of transformative. The agency's multifaceted approach encompasses the formulation of master plans, technological advancements, and the construction of critical infrastructure such as roads, bridges, railways, and metros.

A core objective has been to enhance connectivity across the nation, bridging rural and urban areas with safe, cost-effective, and environmentally friendly solutions. Notable endeavors include the Western Dedicated Freight Corridor Project and metro projects across various cities, including Delhi, Mumbai, Ahmedabad, Kolkata, Chennai, and Bangalore. Recently, JICA added Patna Metro to its portfolio of assisted metro projects.

JICA's support extends beyond financing; it actively collaborates with executing agencies to ensure seamless project implementation. A testament to this collaborative spirit is the early completion of the first phase of the Delhi Metro development project in 2005, a remarkable achievement that exemplifies JICA's dedication to efficiency and timely project execution.

Leading the Charge for Clean Energy

In an era where sustainable energy infrastructure is paramount, JICA has played a pivotal role in supporting India's energy projects. With a commitment dating back many years, the agency has facilitated the installation of 12.9 GW of energy capacity, including an impressive 8.1 GW in the renewable sector.

JICA's support extends to modernizing transmission and distribution lines, promoting energy efficiency, and backing projects across various states like Telangana, Andhra Pradesh, Haryana, Madhya Pradesh, Maharashtra, West Bengal, Meghalaya, Odisha, and Uttarakhand.

Furthermore, JICA appointed a dedicated Energy Expert at the Central Electricity Authority (CEA) in November 2021. This strategic move aims to support India's pursuit of targets outlined in the National Electricity Plan (NEP), fostering better energy optimization and conservation in a sustainable manner.

As the world embraces decarbonization, India has set ambitious goals, including achieving Net-Zero emissions by 2070 and generating 500 GW of renewable energy by 2030. JICA is poised to support India's energy transition by ensuring the efficient use of energy while keeping prices affordable to sustain economic growth.

Key initiatives include harnessing the immense potential of renewable energy sources like solar and wind power, addressing challenges in energy supply and demand, and stabilizing electricity supply through innovative means such as pumped storage, hydropower plants, green hydrogen, and Battery Energy Storage Systems (BESS). These measures are critical in maintaining a stable power supply while incorporating a significant share of renewable energy sources.

Holistic Approach to Development

JICA's approach to development extends across diverse sectors, aligning with India's evolving needs. Over the years, the agency has adapted its focus to address key challenges and opportunities within the Indian landscape.

Historically, JICA played a significant role in developing fertilizer plants to bolster India's agriculture sector in the 1970s. During the Seventh Five-Year Plan, the emphasis shifted towards establishing economic infrastructure, including power plants, in urban and rural areas.

The 1980s marked an expansion into civil works, irrigation, forestry, and road construction. JICA's contributions diversified further with its first loan to the transport sector in 1982, followed by support for India's forestry sector in 1991. During India's economic crisis in 1991, JICA stepped in with emergency loans to mitigate its impact.

In response to global warming and the Sustainable Development Goals (SDGs), JICA partnered with India to develop renewable energy sources and support India's SDG-focused initiatives. Recent years have witnessed JICA's ODA loan portfolio focusing on sectors like transportation, water and sanitation, agriculture, forestry, and health. Notably, during the COVID-19 pandemic, JICA provided emergency assistance, including an 80 billion Japanese Yen (approximately 4,700 crore Indian Rupees) loan and the provision of oxygen concentrators.

For India's Bright Future

Looking ahead, JICA's vision aligns with India's aspiration to supply electricity to vulnerable segments of society and achieve net-zero emissions by 2070. The agency is also increasing its cooperation with the private sector, funding projects with a focus on social impact, financial inclusion, women's empowerment, and affordable housing. This approach facilitates India's development without increasing the government's debt burden.

ODA as a Catalyst for Development

Official Development Assistance (ODA) holds a pivotal place in JICA's efforts to drive welfare funding to developing countries. It is broadly categorized into bilateral aid, where assistance flows directly to developing nations, and multilateral aid, facilitated through international organizations. JICA operates predominantly in the realm of bilateral aid, emphasizing both grants and financial and investment cooperation, including ODA loans and private-sector investment finance.

ODA loans, a cornerstone of JICA's support, provide low-interest, long-term, and concessional funds to finance development projects in partner countries. Beyond financial support, ODA loans promote efficient fund utilization and project supervision, reinforcing the sense of ownership in partner nations.

JICA's role extends beyond financial assistance; it places equal emphasis on nurturing human resources, research and development, technology dissemination, and institutional framework development—crucial elements for comprehensive socioeconomic progress. By customizing cooperation to cater to local needs, JICA empowers individuals to solve problems and fosters a deep sense of ownership in the development process.

The impact of JICA's contributions is striking, with the agency establishing itself as the largest bilateral donor agency to India. Ongoing projects span vital sectors such as water and sanitation, transportation, private sector development, agriculture, and environmental conservation. The volume of assistance varies annually, with a significant milestone reached in the Fiscal Year 2022 when JICA signed loan agreements with the Government of India for ODA loans totaling 467,487 million Japanese Yen. Since the 1950s, Japan has committed over 7,300 billion Japanese Yen (approximately equivalent to 4,48,000 crore Rupees) to fuel progress across sectors.

JICA's global footprint is reflected in its presence in around 100 countries, where it implements projects tailored to local needs, fostering mutual trust and a profound sense of ownership.

Ongoing Endeavors in Northeast India

Northeast India stands witness to JICA's ongoing dedication to development. Currently, there are 16 active projects in the region, spanning diverse domains such as road infrastructure, water and sewerage systems, healthcare, forestry, and power. Notably, the North-East Road Connectivity project, financed by JICA, holds significance for connecting the northeastern states with the vital ports of Chattogram and Matarbari in Bangladesh, promising enhanced trade and accessibility.

JICA upholds the "Quality Infrastructure" principles, emphasizing openness, transparency, long-term life-cycle cost competitiveness, and financial sustainability in infrastructure investments. Before initiating any project, extensive discussions and appraisals are conducted in collaboration with Indian counterpart agencies. This meticulous approach ensures that projects adhere to international standards, including the "G20 Principles for Quality Infrastructure Investment," making JICA a torchbearer of quality and sustainable development.

In conclusion, JICA's journey in India is a testament to the power of collaboration, commitment, and a shared vision for a brighter future. As India marches steadfastly toward achieving its development goals, JICA's role remains indispensable, nurturing partnerships and driving progress that transcends borders.