Japan to pump in Rs 1,000 cr to help build TN infrastructure

C Shivakumar

Chennai:

In what could come as a shot in the arm in developing urban infrastructure in the state, the government of Japan has agreed to pump in Rs 1,000 crore for implementation of development as well as medium term policy programmes of the Tamil Nadu government.

A top state finance ministry official told Express the investments would include road widening, small bridges, distribution lines, water supply and industrial parks, and will be concentrated for the Greater Chennai Metropolitan Area which includes surrounding peripheral areas, the sources added.

He said that Japan International Cooperation Agency, an independent government agency, has agreed to provide Rs 500 crore under Policy Implementation Component and another Rs 500 crore under the Urban Infrastructure Investment Component.

“The terms have been agreed on and the state government is awaiting the clearance from the Union government,” the official said on the sidelines of FICCI’s National Executive Committee Meeting here on Monday.

“The Policy Implementation Component supports the medium term policy program of the state government. The focus of the policy component would be investment promotion including deregulation and simplification of business environment, incentives for manufacturing sector and industrial park development,” the official said.

Sources said Finance and Industries departments will implement this component. Progress of the policy actions carried out and the key outcome indicators identified for this component will be monitored and evaluated jointly by the finance department and JICA. The total amount under this component will be disbursed in two tranches.

Official sources said the urban infrastructure investment component would aim at developing urban infrastructure based on demand driven investment plan developed by the state government.