India to undertake rehabilitation of AIZ

The Indian government is undertaking a project to rehabilitate the Archchuvely Industry Zone (AIZ) in Jaffna district.

This is done as part of a development partnership with Sri Lanka and in response to requirements projected by the Sri Lankan government .

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) yesterday in the presence of Minister of Economic Development Basil Rajapaksa. Minister of Traditional Industry and Small Enterprise Development, Douglas Devananda and High Commissioner of India Ashok K Kantha at the Ministry of Economic Development, states an Economic Development Ministry release.

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 etc. 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 production capacities in the sector of textiles, plastic and leather products, food processing, agro-based industries, oil and fiber products, etc. thereby resulting in better utilization 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 of Sri Lanka 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 SLR 192 million (approx. US$1.7 million). The project is expected to be completed in 14 months.

India has been supporting projects for rehabilitation, resettlement and well-being of displaced persons in the Northern province in the areas of shelter (through roofing sheets and cement bags), health-care (providing emergency medical relief organizing artificial limbs refitment camps and equipping hospitals), livelihood generation (provision of fishing equipment, tractors, agricultural equipment and seeds), education (repairs of schools and setting up of Northern Railway lines, rehabilitation of Palaly Airport and KKS Harbour).