India to rehabilitate AIZ

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

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 productions 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 Traditional Industries and Small Enterprise Development Ministry. Necessary technical expertise and project management services will be provided by the UNOPS. The Sri Lankan 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 Indian government with an estimated outlay of Rs 192 million (approx. US $ 1.7 million).

The Project is expected to be completed in 14 months. An agreement in this connection was entered into by the Indian High Commission with its project implementation partner, the United Nations Office for Project Service (UNOPS) in the presence of Economic Development Minister Basil Rajapaksa, Traditional Industry and Small Enterprise Development Minister Douglas Devananda and the High Commissioner of India Ashok K. kantha at the Economic development Ministry.