Second-tier construction house Kumagai Gumi Co. said Tuesday it has received a 10 billion yen order to build a subway system in Delhi, India.

Kumagai Gumi and partners will begin working on the 11-km line, to be funded with official development assistance from Japan, later this month. The subway will run north-south through the center of the city and is scheduled to be completed in 2005.

Kumagai Gumi received the order from an Indian travel agency acting on behalf of the Indian government and will design and construct a 4.5 km segment of the line.

The project will be conducted in conjunction with the Indian government.

Japan suspended ODA to India after New Delhi detonated nuclear devices in May 1998, but the subway project is not subject to the sanctions because Japan pledged financial support to the project beforehand, Kumagai Gumi officials said.

Kumagai Gumi has worked on subway projects in Singapore and Thailand.

The firm aims to boost order receipts for construction work in Asia while downsizing its presence in Europe and the United States as it rehabilitate its troubled finances.

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