India to rehabilitate Atchchuvely industrial zone

Saturday, 10 December 2011 00:39 - - {{hitsCtrl.values.hits}}

As a part of development partnership with Sri Lanka and in response to requirements projected by the Government of Sri Lanka, India is undertaking a project to rehabilitate the Atchchuvely Industry Zone (AIZ) in Jaffna District.

The Economic Development Ministry said in a statement that an agreement in this connection was entered into by the High Commission of India with its project implementation partner, the United Nations Office for project Service (UNOPS) on Friday in the presence of Minister Basil Rajapaksa.

The objective of the project is to assist potential investors to commence business ventures by providing for required infrastructure and utilities at the AIZ.

The project will undertake to contracture access roads, internal roads, water supply system with treatment plant, power supply, sewerage and waste disposal system as a part of the requisite infrastructure at the zone.

Approximately, 25 acres of the AIZ will be developed initially.

The completion of the project is expected to provide a boost to economic activities in the Jaffna Peninsula and generate local employment, both direct and indirect, for about 2,000 people.

It is also expected to lead to flow of significant investment to increase productions capacities in the sector of textiles, plastic and leather products, food processing, agro-based industries, oil and fibre products thereby resulting in better utilisation of local resources.

The project will be implemented in cooperation with the Ministry of Traditional Industries and Small Enterprise Development of the Government of Sri Lanka. Necessary technical expertise and project management services will be provided by the UNOPS.

The Government through its agencies is already carrying out preliminary site preparation work at the AIZ. The project will be implemented under full grant assistance of the Government of India with an estimated outlay of Rs. 192 million (US$ 1.7 million).

The project is expected to be completed in 14 months.