In a significant move to enhance Tamil Nadu's investment climate, the Japan International Cooperation Agency (JICA) has inked a loan agreement worth 36,114 million Japanese Yen (approximately Rs 2,106 crore) for the third phase of the Tamil Nadu Investment Promotion Program. This funding aims to strengthen the state's regulatory frameworks, infrastructure, and skill development initiatives, positioning Tamil Nadu as a global industry hub.
The third phase of the program will focus on sustainable and future-oriented development, particularly in emerging and green sectors. The initiative aligns with India's rapid growth and emphasizes environmental responsibility, marking a critical step in Tamil Nadu's long-term economic strategy. JICA had previously supported the first and second phases of the program in 2013 and 2017, respectively, with a focus on similar developmental goals.
Key components of the Tamil Nadu Investment Promotion Program include the establishment of the Tamil Nadu Green Climate Fund (TNGCF) to support green and climate-smart industrial projects, as well as energy conservation incentives in partnership with Japan. Another crucial element is the Tamil Nadu Emerging Sector Seed Fund (TNESSF), which aims to promote investment in startups and high-growth industries, including semiconductors and advanced electronics. The Tamil Nadu World Innovation and Skill Training Hub (TNWISH) will also be established to provide cutting-edge, industry-relevant skill development opportunities.
The program further seeks to streamline the business environment for Japanese companies in Tamil Nadu by strengthening the Japan Desk, a collaborative initiative between the state government and JICA.
The Official Development Assistance (ODA) loan agreement was signed by Manisha Sinha, Additional Secretary, Department of Economic Affairs, Ministry of Finance, and Takeuchi Takuro, Chief Representative of JICA India.
Commenting on the partnership, Takuro emphasized Tamil Nadu's pivotal role in India’s industrial growth, noting the success of initiatives like the Japan Industrial Township (JITs) in Chennai. He highlighted that the third-phase program would play a crucial role in fostering green industries and advancing technologies such as semiconductors, further contributing to India’s and Japan’s sustainable development goals.
The Industries, Investment Promotion & Commerce Department of the Government of Tamil Nadu will oversee the implementation of the program, ensuring the effective rollout of policy reforms and infrastructure projects that will drive growth and job creation across the state.