New Delhi: Japan on January 8 announced a substantial concessional loan of $ 900 million to India for investing in areas of health, medical sciences, agriculture and rural development and economic infrastructure development.

Addressing a Federation of Indian Chambers of Commerce and Industry (FICCI)-organised meet, Japanese Foreign Affairs Minister Yoriko Kawaiuchi said, "Japan has decided to pledge fresh concessional loans to India amounting to about $ 900 million."

She said the decision was conveyed to the Indian External Affairs Minister Yashwant Sinha at a meeting held on January 7.

Cooperation between the two sides in Official Development Assistance has produced a multitude of positive outcomes, she said adding Japan had already offered over $ 400 million for the development of Delhi Metro.

Extending cooperation to India in the other areas including environmental conservation, she said that a Japanese mission was being planned in March 2003 for conducting water quality studies on Ganga river.

The visiting minister also sought India's cooperation to boost Global Partnership (an agreement between the two sides) and said, "full potential of the two nations economic partnership is yet to emerge. Japan has much to offer India in the area of investment as well as high technology and managerial skills."

Lauding the role of Indian government for creating a positive environment for foreign investments through economic reforms, she said, "I hope India will continue to reduce its remaining obstacles to trade and investment".

Japan had announced discontinuation of concessional loans to India following Pokhran Nuclear test in 1998.

PTI