The Japanese Government on Thursday agreed to extend soft loan assistance worth Rs 2,556 crore to three projects, including the Tamil Nadu Biodiversity Conservation and Greening project.
In a statement the Japanese Embassy has said the loan package covers three projects in the areas of agriculture, afforestation and sewage.
The concessional loans will be made available through the Japan International Cooperation Agency (JICA) at interest rates ranging from 0.65 to 1.4 per cent per annum with a repayment period of 30-40 years, including a grace period of 10 years.
The Tamil Nadu Biodiversity Conservation and Greening project aims to preserve the biodiversity and expand the forested sites in the State.
The other projects for which Japanese soft loan assistance is being made available are the Yamuna Action Plan Project (III) and the Himachal Pradesh Crop Diversification Promotion Project.
India has been the largest recipient of Japan's ODA for seven consecutive years since 2003.
The main objective of Japanese loan assistance to India is to support India's efforts to sustain economic growth, reduce poverty, build economic and social infrastructure and tackle environmental issues.