Japan will extend an assistance of Rs. 1,958 crore (30.7 billion yen) to India for Indian Institute of Technology (IIT) Hyderabad and investment promotion programme in Tamil Nadu.
An agreement to this effect was exchanged in New Delhi on Tuesday between Rajesh Khullar, Joint Secretary in the Finance Ministry and Takeshi Yagi, Ambassador of Japan to India, according to a statement issued by Japan International Cooperation Agency (JICA).
The 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, JICA will provide Rs. 829 crore for the Tamil Nadu Investment Promotion Programme. 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 foreign direct investment (FDI) in manufacturing and that can happen only if quality infrastructure is developed," chief representative of JICA in India Shinya Ejima said.