Japan International Cooperation Agency (JICA) launched a Tamil Nadu wide Urban Healthcare Project covering 17 cities including Chennai.

The project is aimed at upgrading overall healthcare infrastructure and capability in government run hospitals. JICA signed the ₹1,500 crore loan agreement (25,537 million Japanese Yen) for the Urban Healthcare Project in the State with the Government of India on March 31, 2016.

The objective is to improve the quality of healthcare services in urban areas by strengthening the capacity of key hospitals by upgrading facilities and equipment. Human resources capacity will also be strengthened with focus on Non-Communicable Diseases (NCDs).

JICA’s Official Development Assistance (ODA) loan's conditions are very concessional at 0.3 per cent interest rate with 30 years of repayment period including a 10-year grace period. The significance is that the referral hospitals covered under the project cater to the economically weaker section that has limited access to private hospitals. Tamil Nadu has the third highest slum population in India with 1.4 million slum households.

The project was launched at a function by the Tamil Nadu Chief Minister Edappadi K Palaniswami and senior officials.

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