Jica provides Rs 829 cr loan to Tamil Nadu

Loan to be used to improve investment climate in TN

The Japan International Cooperation Agency (Jica) today signed an agreement with the Centre for providing up to Rs 829 crore (13 billion Yen ) loan for the Tamil Nadu Investment Promotion Program (TNIPP). 

The objective of the programme is to support policy implementation for improving investment climate in Tamil Nadu, aimed at easing business hurdles for foreign investors. This is the first-ever programme loan (policy-based lending) provided by Jica to India.

The agreement was signed in New Delhi today by Rajesh Khullar, joint secretary (bilateral cooperation), finance, and Shinya Ejima, chief representative, Jica India.

Under the TNIPP for financial years 2012-14, Jica and the state government had planned to jointly monitor the progress and achievement of predefined policy actions, which are aligned with the Vision Tamil Nadu 2023. These include development of infrastructure such as road, power supply, water and sewerage systems, especially those for factories and industrial zones in Chennai metropolitan area where a large number of international manufacturers have set up their factories.

Programme loan is a quick-disbursing assistance to countries with external financing needs, to achieve sustainable development through a programme of policy actions that promote growth and enhance the well-being and increase the incomes of people. The proceeds of loan will be used not for the implementation of specific project, but for the implementation of policy actions by the government.

In June this year, Tamil Nadu chief minister J Jayalalithaa sought Jica's co-operation in the formulation of designed TNIPP.

The Vision 2023 is to make TN the most favoured investment destination in India, and one of the top three investment destinations in Asia. The document envisages strengthening of infrastructure, including human capital in the state by 2023, with an investment of Rs 15 lakh crore.