New Delhi:  India on Friday signed a loan deal worth $76 million with Japan International Cooperation Agency (JICA) for a project to upgrade the environment management plan at Alang-Sosiya ship recycling yards in Gujarat, an official statement said.

The total cost of the project will be $111 million, out of which $76 million will be provided as soft loan from JICA, a statement from the Shipping Ministry said.

Out of the remaining amount, $25 million as taxes and fees will be borne by the Gujarat government and the balance $10 million will be shared by the Shipping Ministry and the state government, it added.

The project will be executed by Gujarat Maritime Board (GMB) and is likely to be completed by 2022.

"This project will help the Alang-Sosia ship-recycling yards to comply with international safety and environmental regulations."

"This project will also help in safeguarding the marine and coastal environment. The use of advanced decontamination technology will rule out the possibility of fire accidents in oil and chemical tankers, thereby ensuring workers safety," the statement said.

It added that the project would increase direct employment from 50,000 to 92,000 people and indirect employment from 1.5 lakhs to 3 lakh people.