Japan to give Rs. 1,958 crore loan assistance to India

Japan will provide an assistance of Rs. 1,958 crore (30.7 billion yen) to India for campus development at IIT Hyderabad and investment promotion in Tamil Nadu.

The Notes to this effect were exchanged here between Rajesh Khullar, Joint Secretary in the Finance Ministry, and Takeshi Yagi, Ambassador of Japan to India, a statement said.

An amount of Rs. 1,129 crore will be provided for the second phase of campus development at the Indian Institute of Technology (IIT) in Hyderabad.

Further, the Japan International Cooperation Agency (JICA), will provide Rs. 829 crore for the Tamil Nadu Investment Promotion Programme, the statement added.

The objective of the Tamil Nadu programme is to support policy implementation to improve the investment climate in Tamil Nadu, thereby easing business hurdles for foreign investors.

This would include development of infrastructure such as road, power supply, water and sewerage systems, especially those for factories and industrial zones in the Chennai metropolitan area, where international manufacturers have set up factories.

“Development of the manufacturing sector is a key for faster growth and job creation in India. India needs FDI in manufacturing and that can happen only if quality infrastructure is developed,” Chief Representative of JICA in India Shinya Ejima said.