India and Japan have decided to further extend their strategic economic cooperation through Japanese investments in new feeder projects alongside the Delhi-Mumbai industrial corridor.
The decision towards this was formalised at a meeting between India's minister of commerce, industry and textiles Anand Sharma and his Japanese counterpart minister of economy, trade and industry Toshimitsu Motegi.
The move comes after the Government of India finalised the process of 26 per cent equity participation by Japan Bank for International Cooperation (JBIC) in Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) and relaxation of capital regulations to enable long-term lending for DMICDC projects through JBIC.
The two sides agreed to expedite the process of smart community projects in Gujarat and Maharashrtra on a priority basis and seek early solution for implementation of such projects such as availability of power and other inputs as also regulatory approvals, including environmental clearances.
The new projects that would utilise Japanese smart technology include:
- Seawater desalination plant at Dahej
- Power system stabilisation project in Gujarat
- Microgrid system for photovoltaic power generation at Neemrana in Rajasthan and
- Gas-fired independent power project in Maharashtra.
The trunk infrastructure projects for the Japanese-aided $4.5 billion facility would be implemented through advanced innovative cutting-edge technologies for sustainable development, in a way beneficial to both the countries, the two sides said in an agreement signed yesterday.
The two sides agreed that since this the DMIC is a strategic partnership initiative between the two countries, the objective should be to attract Japanese technology and investments along the DMIC corridor.
While Japan will help in manufacturing sector growth through development of industrial clusters and skill development centers promoted by the Overseas Human Resources and Industry Development Association and Japan External Trade Organisation (JETRO) in the DMIC region.
The main attraction of industrial cluster development would be `Japanese industrial zones' facilitated by some of the state governments in DMIC region and JETRO, which are expected to create globally-competitive industrial clusters in the country
Chennai-Bengaluru Industrial Corridor
The Chennai-Bengaluru Industrial Corridor (CBIC) project, which is also being implemented with Japanese collaboration, seeks to enhance the quality of infrastructure in the region. As part of the project, the two sides have agreed to take up the issue of improving access to Ennore and Chennai ports with the sate government.
In order to speed up the project, the two sides also agreed to reinforce bilateral co-operation in the region and provide impetus to development of industrial clusters and skill development.
Meanwhile, the two sides have finalised the terms of reference for the perspective planning of the region and for the master planning of investment nodes. It was agreed to reinforce their cooperation in the CBIC region.
India and Japan will soon begin discussions on concrete measures to deepen India-Japan investment promotion under partnership with both countries' businesses.
CEOs of top Japanese companies, including those from Mitsubishi, Hitachi, New Energy and Industrial Technology Development Organisation (NEDO), made a detailed presentation to on the progress of the project implementation. The CEO of Japan Bank of International Cooperation (JBIC) Hiroshi Watanabe also met Sharma assuring him of full financial support for the DMICDC project and other infrastructure projects in India.
Anand Sharma also met Japanese prime minister Shinzo Abe to seek greater access for Indian pharma and agri products in the Japanese markets
Sharma is on a two-day visit to Tokyo for a comprehensive review of bilateral economic engagement with Japan, ahead of prime minister Manmohan Singh's visit to Tokyo.