JICA Funds TN Investment Program Phase 3: Rs 2,106 cr

Chennai, Apr 1 (PTI) Japan International Cooperation Agency (JICA) has signed a loan agreement worth 36,114 million Japanese Yen (about Rs 2,106 crore) for the third phase of the Tamil Nadu Investment Promotion Programme, aimed at making the state a global industry hub, a top official said.

The third phase of the Tamil Nadu Investment Promotion Programme (TNIPP) would support the state government's policies to enhance the investment climate by strengthening the regulatory frameworks, upgrading infrastructure, and facilitating industry-ready skill development in Tamil Nadu.

JICA had previously extended the Phase 1 and Phase II loans of the Tamil Nadu Investment Promotion Programme in 2013 and 2017 focusing on similar developmental priorities by the state government.

The Tamil Nadu Investment Promotion Programme Phase III includes renewed focus on emerging and green sectors to promote sustainable, future-oriented development in line with India's growth, a press release from Japan International Cooperation Agency said on Tuesday.

The programme includes initiatives such as the Tamil Nadu Green Climate Fund - to support green and climate-smart industrial projects, incentives for energy conservation in collaboration with Japan, the Tamil Nadu Emerging Sector Seed Fund - to boost investment in startups and high growth sectors including semiconductors. It also covers the Tamil Nadu World Innovation and Skill Training Hub - to provide industry-relevant state-of-the-art skill development.

Besides, the Programme also aims to improve the ease of doing business for companies based out of Japan.

The Official Development Assistance (ODA) Loan was recently signed between the Ministry of Finance, Economic Affairs Additional Secretary Manisha Sinha and JICA India Chief Representative TAKEUCHI Takuro.

"Tamil Nadu has been at the forefront of India's industrial and economic growth establishing itself as a global industry hub including for Japanese industries such as the successful Japan Industrial Township in Chennai. With an increasing focus on sustainability and technology advances, the new Phase 3 programme will play a pivotal role in further strengthening the state's industrial ecosystem such as green industries and emerging technologies including semiconductors," Takuro said.

The Tamil Nadu government's industries department, and investment promotion agency are executing this project towards ensuring effective implementation and monitoring of policy reforms and infrastructure initiatives.

"JICA has been committed to the development of the manufacturing sector and job creation not just for Tamil Nadu but also pan-India,and we are delighted to work on new sectors that will be key drivers for sustainable development of both India and Japan," Takuro added.