"JICA Grants ₹2,809 Cr ODA Loan for Chennai Peripheral Ring Road Project Phase 2"

The Japan International Cooperation Agency (JICA) has inked a loan agreement amounting to ¥49,847 million (approximately ₹2,809 crore) to facilitate the construction of the Chennai Peripheral Ring Road Project (Phase 2) in Tamil Nadu.

The Chennai Peripheral Ring Road is identified as a priority project in the “Comprehensive Integrated Master Plan for Chennai-Bengaluru Industrial Corridor (2015),” established through an agreement between the Governments of Japan and India. The project aims to address the burgeoning traffic demands in the Chennai metropolitan area, alleviate congestion, reduce transportation time by approximately 40 minutes to and from Chennai and Ennore ports (via the Phase 1 & 2 projects), and enhance connectivity to the southern part of the State by constructing a 26.3-km Peripheral Ring Road and implementing Intelligent Transportation Systems.

JICA previously signed a loan agreement for the first phase of the project in March 2018, supporting the construction of Section 1 (totaling 24.5 km), the northernmost segment of the Peripheral Ring Road. In this subsequent phase, JICA will contribute to the construction of Section 5, the southernmost part of the Peripheral Ring Road, and the introduction of Intelligent Transportation Systems (ITS) across Sections 2 to 5.

The Official Development Assistance (ODA) loan agreement was formalized between Vikas Sheel, Additional Secretary of the Department of Economic Affairs, Ministry of Finance, and SAITO Mitsunori, Chief Representative of JICA India, in Delhi on Tuesday.

Commenting on the initiative, SAITO Mitsunori, Chief Representative of JICA India, remarked, “The traffic volume in Chennai has been increasing steeply with rapidly growing urbanization, resulting in continuous severe traffic congestions. JICA will contribute to mitigating traffic congestion and improving industrial development in Chennai through both the Phase 1 and Phase 2 of the project.”

The executing agency for the project is the Highways and Minor Ports Department of the Government of Tamil Nadu, the release stated.

HBL