To help increase foreign direct investments in Tamil Nadu, Japan has provided Official Development Assistance (ODA) of $130 million.
An agreement in this regard was signed between the Japanese Ambassador to India, Takeshi Yagi, and Joint Secretary, Department of Economic Affairs, Ministry of Finance, Rajesh Khullar, here on Tuesday.
The decision to pump in ODA funding comes as there has been a three-fold increase in Japanese companies investing in the State in the last four years with Tamil Nadu having 344 Japanese firms now, officials said. The funds will be made available to the State Government only if certain plans linked to creation of power, roads, water and sewer development are taken up on a priority basis, officials said.
In addition, $177-million ODA has been provided to the Indian Institute of Technology, Hyderabad, to improve education and research environment through the construction of facilities there. A statement adds that the project will help in strengthening relations between the two countries through human resource development in the fields of engineering, science and technology, human and academic exchanges.
The tenure of the two loans and repayment terms were not immediately available.
Reconstruction work
Japan also pledged $150 million to support reconstruction activities in Uttarakhand. A team of Japanese experts is expected to visit India soon to discuss details, Deputy Press Secretary Koichi Mizushima told newspersons and added that these three projects will be added to the existing Japanese economic assistance to India.
Boosting ties
Meanwhile, External Affairs Minister Salman Khurshid met with Japanese Foreign Minister Fumio Kishida here on Tuesday and discussed various bilateral issues, including matters relating to enhanced economic engagement. The two Ministers felt that India-Japan cooperation should not be limited to bilateral issues but also the regional context.