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
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).