India Signs Loan Agreement With World Bank

In yet another boost to the Micro, Small and Medium Enterprises (MSME) sector, the government has signed a loan agreement worth $200 million with the World Bank (IBRD) for Technology Centre System Programme (TCSP) project. The project aims to improve MSME’s access to better technology and business advisory services as well as improve skill development for workers through financially sustainable technology centres, which would lead a substantial increase in the productivity.

“TCSP is for setting-up of 15 new Technology Centres (TCs) and to modernize and upgrade existing 18 TCs at an estimated cost of Rs. 2200 crore (US$ 400 million) including World Bank assistance of US$ 200 million”, said the Ministry of Finance in a statement.

It further added that the project has been divided into three levels which include technical assistance to the TCs, making investment to upgrade and develop the existing TCs and lastly providing technical assistance to the MSME Ministry for implementation, monitoring and evaluation of the project.

The agreement was signed by Onno Ruhl, Country Director (India), World Bank and Tarun Bajaj, Joint Secretary, Department of Economic Affairs. The loan has been extended for a period of five years.