The Government of India and the World
Bank signed 30 January 2018 a $100 million Loan Agreement which is focused on
facilitating access to finance and on creating employment opportunities
particularly for women ‘ in selected blocks of Tamil Nadu across 26 districts,
directly benefitting over 400,000 people’, says a release.
The Tamil Nadu Rural Transformation
Project, after analysis of business plans, identified by the communities, will
promote businesses across select value chains. “Thirty percent of the financing
for these business plans will be through a matching grant program from the
project and the remaining 70 percent will be leveraged from other financial
Speaking on the occasion, Mr. Sameer
Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of
Finance said that the Government of India is committed to help create an
enabling environment of institutional reforms, policies and investments which
are key factors that will help India attain speedy and inclusive rural
Mr. Junaid Ahmad, World Bank Country
Director for India said that World Bank-financed State Livelihood Projects,
which have so far reached over 35 million people, have given the rural poor a
greater sense of identity, and better services and livelihood opportunities. He
said that this Project will build on those achievements and support Tamil
Nadu’s rural enterprises access finance, build business skills and create jobs.
The Project will be operational in
120 blocks across 3,994 villages in 26 Districts of Tamil Nadu with 411,620
direct beneficiaries. It will work with targeted households that are already
part of Self-Help Groups (SHGs).
The project will be rolled out in a phased
manner – 26 blocks will be taken up for implementation in all project districts
in the first eight months, followed by 52 blocks by the end of 12 months, and
the remaining 42 blocks by the end of 18 months from initiation of project
Selected innovations and
start-up ideas will also be tested or scaled up under a newly created platform
known as the Tamil Nadu Rural Transformation Marketplace. Innovative ideas
related to promoting rural artisans, local nutritious food systems and
traditional health practices will be considered.
The project will draw lessons from
several rural livelihoods programs in India and build on the successes of the
recently closed Tamil Nadu Empowerment and Poverty Reduction Project.
Mr. Hans Raj Verma, Additional Chief
Secretary, Government of Tamil Nadu said that the Project will specifically target at least 60 percent
women entrepreneurs from the SHG network in Tamil Nadu who have the potential
to move into the next level of economic integration.
E-governance architecture with the
use of ICT along with a robust Management Information System (MIS) will help
monitor and track results real time.
The $100 million loan from the
International Bank for Reconstruction and Development (IBRD), has a 5-year
grace period, and a maturity of 19 years.
The Agreement for the project was
signed by Mr. Sameer Kumar Khare, Joint Secretary, Department of Economic
Affairs, Ministry of Finance, on behalf of the Government of India; Mr. Praveen
P. Nair, Project Director on behalf of the Government of Tamil Nadu; and Mr.
Junaid Ahmad, Country Director, World Bank India, on behalf of the World Bank.