The Japan International Cooperation Agency has “in principle” agreed to extend Rs 1,000 crore in the first round of funding for various infrastructure development projects in Tamil Nadu, said a highly-placed government official.

Speaking to a group of journalists on the sidelines of the Executive Committee meeting of the Federation of Indian Chambers of Commerce and Industry here today, the official said clearance from the Department of Economic Affairs is awaited.

According to him, the funds will be used for various small and big infrastructure projects such as building roads and setting up power transmission lines. Early this year, the Japanese agency expressed willingness to support the Tamil Nadu Transmission Corporation’s plan to expand its operations.

Besides offering financial support to set up power transmission lines, a team of experts from the agency will also offer the Corporation technical guidance.

In his Budget for 2012-13, the Finance Minister, Mr O. Panneerselvam, had stated that it was planned to strengthen the transmission network at a cost of about Rs 3,573 crore, to be funded by the Japanese agency.

Besides, the Government also sought funds from the same organisation for Rs 1,100-crore Phase II of the Outer Ring Road project connecting Nemilicherry and Minjur, a distance of 32 km. Phase I of the project, covering a distance of 30 km from Vandalur to Nemilicherry, is being built at an estimated cost of Rs 1,081 crore and is likely be completed by the end of this year or early next year.

rravikumar

@thehindu.co.in

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