New Delhi/Hyderabad, Jan 29 (IANS): The Japan International Cooperation Agency will provide Rs.1,336 crore (JICA) loan for building part of the campus of the newly established Indian Institute of Technology (IIT), Hyderabad.

JICA Wednesday signed the agreement with the government of India to provide Japanese Official Development Assistance (ODA) loan.

The agreement was signed in the national capital by Shinya Ejima, chief representative, JICA India Office and Rajesh Khullar, joint secretary (bilateral cooperation), Ministry of Finance, government of India.

The loan is at a concessional rate of 1.40 percent and carries a repayment period of 30 years with grace period of 10 years. The project is to be executed by IIT Hyderabad and expected date of completion is 2018, said a JICA statement.

The loan proceeds would be utilised for constructing permanent campus building and procurement of high-end research equipment for the institute.

Eminent professors of the University of Tokyo would be involved with the preparation of concept designs and architectural plans for some of the important campus buildings.

This project is a result of understanding reached between the prime ministers of India and Japan, where it was agreed to not just fund institute of technical eminence but also involve sharing of technical knowledge.

Ejima hoped the loan would go a long way in providing quality infrastructure to this new IIT.

He said following technical cooperation with the University of Tokyo, the project would help improve the quality and quantity of higher academic institutions in the areas of science and engineering in India.