JICA extends ODA loan of INR 2,106 crores for Tamil Nadu Investment Promotion Program (Phase 3) in India

Tamil Nadu, 27 March 2025: Japan International Cooperation Agency (JICA) signed a loan agreement amounting to 36,114 million Japanese Yen (approximately INR 2,106 crores) for Phase 3 of the Tamil Nadu Investment Promotion Program for the state of Tamil Nadu, India.

This third phase of the program will reinforce key initiatives by the Government of Tamil Nadu to make Tamil Nadu a global industry hub. The program will support the state government’s policies to enhance the investment climate by strengthening regulatory frameworks, upgrading infrastructure, and facilitating industry-ready skill development in the state, ultimately attracting greater investment into the state including from Japan. JICA previously extended the Phase 1 and Phase 2 loans of the Tamil Nadu Investment Promotion Program respectively in 2013 and 2017, focusing on similar developmental priorities by the state government.

Phase 3 builds upon these efforts with a renewed focus on emerging and green sectors to promote sustainable, future-oriented development in line with India’s rapid growth. The program includes initiatives such as the Tamil Nadu Green Climate Fund (TNGCF) to support green and climate-smart industrial projects, incentives for energy conservation in collaboration with Japan, the Tamil Nadu Emerging Sector Seed Fund (TNESSF) to boost investment in startups and high-growth sectors including semiconductors and advanced electronics, and the Tamil Nadu World Innovation and Skill Training Hub (TNWISH) to provide industry-relevant, state-of-the-art skill development.

Additionally, the program aims to improve the ease of doing business for Japanese companies in the state through strengthening its Japan Desk in collaboration between the state government and JICA.

The ODA loan agreement was signed between Ms. Manisha Sinha, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. TAKEUCHI Takuro, Chief Representative of JICA India.

Speaking on this occasion, Mr. TAKEUCHI Takuro, Chief Representative of JICA India Office, said, “Tamil Nadu has been at the forefront of India's industrial and economic growth establishing itself as a global industry hub including for Japanese industries such as the successful Japan Industrial Township (JITs) in Chennai. With an increasing focus on sustainability and technology advances, the new Phase 3 program will play a pivotal role in further strengthening the state's industrial ecosystem such as green industries and emerging technologies including semiconductors. JICA has been committed to the development of the manufacturing sector and job creation not just for Tamil Nadu but also pan-India, and we are delighted to work on new sectors that will be key drivers for sustainable development of both India and Japan.”

The Industries, Investment Promotion & Commerce Department, Government of Tamil Nadu, is the executing agency for this project, ensuring effective implementation and monitoring of policy reforms and infrastructure initiatives.

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.71491/-