September 15, 2017
New Delhi, September 15, 2017: Japan International Cooperation Agency (JICA) signed an agreement with the Government of India to provide Official Development Assistance (ODA) Loan of 16,825 million Japanese Yen (approximately INR 1,000 crores) to the Government of Gujarat (GoG) for "Gujarat Investment Promotion Program (GIPP)". The ODA loan's conditions are very concessional, i.e. 0.6% interest rate for project activities and 15 years of repayment period (including 5 years of grace period). The program aims at improving and developing the investment climate through strengthening the policy framework and facilitating development of trunk and industry related infrastructure in a timely manner, thereby contributing to increase of private investment in Gujarat including foreign direct investments. The Program also aims to support the medium-term policy program of the GoG in accordance with its strategic initiatives mentioned in the vision document ‘BIG 2020'.
The ODA loan agreement was signed between Mr. Takema Sakamoto, Chief Representative, JICA India Office and Mr. S. Selvakumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India.
Speaking on the occasion, Mr. Takema Sakamoto, Chief Representative, JICA India Office said, "GIPP is accelerates the growing trend of private sector's investment by international companies in Gujarat. The Program also contributes to the progress of the Delhi-Mumbai Industrial Corridor (DMIC) led by the Governments of both Japan and India. JICA's cooperation will strengthen the program and lead to develop capacity building of the Public Private Partnership (PPP) cell, world class industrial estates, and single window system for industrial estates, making Gujarat and even more attractive and friendly place for investment."
The Program comprises of various component to be undertaken by different agencies of GoG, namely: acceleration of Infrastructure Development through Gujarat Infrastructure Development Board (GIDB), development of skilled workforce through strengthening of Gujarat Skill Development Mission by Apex Training Institutes and strengthening of iNDEXTb etc. The Program also aims to develop a dedicated policy research cell to enable smooth coordination with investors to understand their infrastructure requirements. GIPP targets project development in a structured, seamless, efficient and transparent manner. The projects will be shortlisted and prioritized taking into account requirements of existing and potential foreign investors. The objective is also to improve and expand the availability of skilled workforce by undertaking quality training certification programs, upgrading the single window clearance system by integration of various departments so as to provide 100% online approvals through integration of new services to investors and tenants into the online system.
Gujarat has grown into a major industrial and commercial centre and is leading India's economic growth with the state's export being 19% of that of India and the ports in the state collectively handling around 41% of total Indian maritime cargo.
Since 1981, JICA has extended ODA loans worth 220,794 million Japanese Yen (approximately INR 13,000 crores) for the development of Gujarat.
L-R - Mr. Takema Sakamoto, Chief Representative, JICA India Office, Mr. Kazuhiko Koshikawa, Executive Senior Vice President, JICA Head Office and Mr. S. Selvakumar, Joint Secretary , Department of Economic Affairs (DEA) at the Loan Agreement Signing of Gujarat Investment Promotion Program
Established, by a specific law, as an independent administrative institution under the Government of Japan,the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.
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