Japan International Cooperation Agency (JICA) has agreed to provide 13 billion yen loan to India on the Tamil Nadu Investment Promotion Program (TNIPP). The contract was signed by two sides on October 12 as JICA’s first policy-based lending program on which the two governments monitor progress and accomplishment of the borrower’s policy implementation previously defined by them. The loan will be used to improve the investment climate in Tamil Nadu, where a large number of Japanese private sectors are planning to invest. With this fund, the Tamil Nadu government will build infrastructure such as roads, sewer, and power around industrial zones. Thereby Japanese firms and manufactures can accelerate expanding their business in the area, creating construction demand for Japanese contractors.

Chennai metropolitan area, the capital city of Tamil Nadu is economically developing part of South India, where have been attracting a great amount of foreign investments. JICA intends to make this opportunity a booster for active business operation by Japanese enterprises as well as a start toward realization of the Chennai-Bengaluru Industrial Corridor Project that Japanese and Indian government jointly take the initiative in. (2013/11/14)