India, Japan in Talks for $9-Billion Infrastructure Fund .

[Water Car Engineer]

NEW DELHI – India has proposed to set up a revolving fund of $9 billion jointly with Japan to help finance the Delhi-Mumbai Industrial Corridor project, a government statement said Tuesday.

According to the proposal, Japan and India will contribute equally to the fund, Anand Sharma, minister for commerce and industry, said in the statement.

Mr. Sharma said he expects the industrial corridor project to attract investments of more than $100 billion.

India, Japan in Talks for $9-Billion Infrastructure Fund - WSJ.com

 

[Water Car Engineer]

India, Japan in Talks for $9-Billion Infrastructure Fund

NEW DELHI—India's trade minister Tuesday proposed setting up a revolving fund of $9 billion jointly with Japan to help finance an industrial link, a move that highlights a growing intent to fix the country's shabby infrastructure, which often hurts growth in Asia's third-largest economy.

Anand Sharma, currently in Japan to sign an economic co-operation pact, met Japanese Prime Minister Naoto Kan and informed him of the current status of the industrial and transport link between New Delhi and India's financial capital Mumbai.

The Delhi-Mumbai Industrial Corridor project, which started in 2007, is financed by the Indian government, Yen loans from Japan and investment from Japanese companies.

The project, modeled along the Tokyo-Osaka industrial corridor, is proposed to include a high-speed rail freight corridor, new power capacity of 4,000 megawatts, three new sea ports and six airports. India also plans to upgrade existing industrial units, build 12 new industrial clusters, 10 logistic parks and agricultural hubs alongside the industrial corridor.

The DMIC's first phase is scheduled to be ready by 2012 and is expected to boost the economy in a country where, economists widely believe, creaky infrastructure takes 2% off annual growth.

Mr. Sharma, who expects the project to attract more than $100 billion in investments, urged Japanese companies to invest in capital goods such as power equipment.

India is increasingly relying on private and overseas investment to develop its infrastructure as it aims to spend $1 trillion between 2012 and 2017 to lay new roads and build airports.

Investments in the country's roads, bridges and power plants are so far mostly funded out of local savings, which hover around 35% of gross domestic product.

However, India has struggled to attract long-term capital, which is key to infrastructure project financing, as bureaucratic red-tape, a shallow local bond market and faulty project designs have often thwarted overseas investors from committing money that won't promise returns in a decade.

Indian pension and insurance companies can't directly invest in infrastructure projects under current regulations, limiting crucial funding. In the current five-year plan to March 31, 2012, such funds are likely to contribute less than 7% to the total investment in projects.

Insurance and pension funds elsewhere are key buyers of long-term infrastructure bonds.

India, Japan in Talks for $9-Billion Infrastructure Fund - WSJ.com

 

[Water Car Engineer]

Anand Sharma Discusses DMIC with Japanese Prime Minister

Commerce and Industry Minister Shri Anand Sharma called on Japanese Prime Minister Mr Naoto Kan today in Tokyo. During his meeting, Prime Minister Kan expressed satisfaction on the conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with Japan, which is being signed tomorrow.

Prime Minister Kan underscored the significance of Indo Japanese technology collaboration for research and innovation. He called for a partnership in development of India’s infrastructure, specifically referring to Delhi Mumbai Industrial Corridor project. While responding, Mr Sharma highlighted the importance attached by India to of the Delhi Mumbai Industrial Corridor Project which has now decisively moved from the stage of master planning to project implementation. This project will see investments of over $100 billion and is being seen as a flagship initiative of Indo-Japan partnership. Minister Sharma proposed the establishment of a revolving fund of $ 9 billion with matching contribution from Indian and Japanese side to kickstart the implementation process. Japanese Prime Minister agreed to enhance the financial contribution of Japan and was positively receptive to the suggestion. Mr Sharma urged for greater Japanese investments in areas of core infrastructure and capital goods equipment including power generation where Japanese companies have a technological edge.

During the twenty minute long meeting, Minister Sharma said the India viewed a partnership with Japan as a ‘strategic engagement’ in the region and in the global context. This would be central to the vision of Asian integration articulated by Prime Minister Manmohan Singh.

Mr Sharma is in Tokyo on a two day visit, accompanied by a high level official delegation including the Commerce Secretary and a CII CEO’s delegation led by CII President Hari Bharatia.

Tomorrow, Minister Sharma will be signing the CEPA along with the Japanese Foreign Minister Maehara. Later in the day, he will be holding substantive bilateral meetings with the METI minister to review the progress of DMICDC project. He will be interacting with top Japanese CEOs to seek Japanese investments in India in areas of priority as identified at the Summit level interaction between the Prime Ministers.

Press Information Bureau English Releases

 

[tallboy123]

Japan u r welcome to India....

 

[Paan Singh]

no doubt japs are best

 

[EastWest]

$9 billion...WoW !!!!

thats huge!!!

Our co-operation with Japan in civilian projects is huge..i hope we can do the same in defence and space research development...

 

[Paan Singh]

japan is situated on the islands which is vulnerable to earthquakes,but still they achieved too much.
so their investment in infrastructure will be awesome

 

[Water Car Engineer]

$9 billion...WoW !!!!

thats huge!!!

Our co-operation with Japan in civilian projects is huge..i hope we can do the same in defence and space research development...

Yes, the Japanese are great partners.

Check this news out...

Japan to Help India Build 24 Green Cities

Japan will contribute in terms of credit and technology in an ambitious and ground-breaking infrastructure project which will build 24 green cities in India’s western region. The project is part of the proposed $90 billion Delhi-Mumbai Industrial Corridor mega-infrastructure project which aims at boosting the economic growth along the about 1500-km-long stretch that joins the most important cities of India, New Delhi and Mumbai.

The aim of the green cities projects is to fulfill the basic infrastructure requirements in the smaller towns along this corridor so as to increase and expand the economic growth and prosperity. The improved infrastructure in these towns and cities would mean new generation and export capabilities which would immensely contribute to the economic development and GDP growth of India.

The two metropolitans central to this project are completely developed but still face some basic infrastructure problems due to increasing load of transportation and degrading roads, public transport being unpopular, and a very high influx of people from villages in search of jobs. In order to provide inclusive growth and better living standards to people living in the rural areas, it is important to concentrate the infrastructure push towards the rural and less developed areas.

Therefore, the Indian and Japanese governments are planning to develop green cities which would be planned and executed in a manner that would ensure sustainable growth. The cities would have better transport facilities centered around public transport. The micro infrastructure located within the city would be developed in a way so that it would be easily accessible to the people without the use of any kind of transportation. Electricity and water supply are among the biggest problems in India and these cities would have optimized power supply and 24-hour water supply. The cities would also have waste and water recycling plants.

Such projects would not only improve the economic conditions of the relatively less developed areas of India but also help them participate and further boost India’s economic growth. With several macro and micro infrastructure projects planned over the next five to seven years under this mega project, thousands of jobs would be created which would reduce the migration of people towards the metros.

Japan is also likely to offer some of its energy efficient technologies. Since Japan is a net importer of energy it must use all the resources efficiently. Power is a scare resource in India and Japanese technology can help it reduce the number of power shortages and use it much more efficiently.

Japan has been providing substantial financial and technical aid to India for several years. It has invested in numerous infrastructure projects including the Delhi Metro project. The DMIC project is already underway and will cover six states — Rajasthan, Gujarat, Maharashtra, Haryana, Uttar Pradesh and Madhya Pradesh. Preparatory work on the pilot projects for seven green cities has already started and the first city will come up in the Dholera investment zone, Gujarat.

Japan to Help India Build 24 Green Cities – CleanTechnica: Cleantech innovation news and views

 

[tallboy123]

$9 billion...WoW !!!!

thats huge!!!

Our co-operation with Japan in civilian projects is huge..i hope we can do the same in defence and space research development...

India is planning to Invest 1 trillion over next 5 years to build good infrastructure...
We need more investments...

 

[Skull and Bones]

Japan already has a huge presence in Indian market, and now its high time for them to take the advantage of our growing economy. 9 billion is just the amount to start with, more investments are coming our way.

 

[cross1993]

MRCA is also the 9 bln USD. Now the money is back...

Congratulations! ^_^

 

[tallboy123]

MRCA is also the 9 bln USD. Now the money is back...

Congratulations! ^_^

Its $12 billion dollars...

 

[Capt.Popeye]

MRCA is also the 9 bln USD. Now the money is back...

Congratulations! ^_^

Thanks
But that is not what its about. According to me this is far more important and relevant than the MRCA deal. The investment in the form of funding matters undoubtedly but what is coming with this deal will be better technical know-how to set up the infrastructure projects.
Finally, but no less importantly; this will in turn motivate other investment and involvement in the envisaged projects. That will be a real multiplier.

 

[Indian Army]

Japan, India to push ahead with 3 infrastructure projects

Tokyo, Dec 25 (PTI) India and Japan are set to push ahead with three major infrastructure projects on solar power, seawater desalination and gas-fired energy production during the upcoming visit of Prime Minister Yoshihiko Noda to New Delhi.

The projects will be involving Japanese companies and are part of a bilateral initiative agreed in 2006 to build a freight railway linking Delhi and Mumbai and industrial complexes along the rail corridor, known as "the Delhi-Mumbai Industrial Corridor," officials were quoted as saying by Kyodo news agency.

It is the part of $9 bn infrastructure investment agreed with $4.5 bn each.

The three projects concern the building of a solar power generation system, seawater desalination and gas-fired power production.

The envisioned accord between Noda and his Indian counterpart Manmohan Singh is expected to give momentum to efforts by the Japanese public and private sectors to export infrastructure systems so as to boost Japan''s economic growth.

Under the solar power generation system project, Hitachi Ltd. and the government-linked New Energy and Industrial Technology Development Organization plan to operate the system on a trial basis, supplying power to industrial parks.

Hitachi will also team up with trading house Itochu Corp.
and the city government of Kitakyushu, which provides technical expertise to foreign governments on building water supply systems, in a project in India that involves seawater desalination and building an industrial water supply network.

Mitsubishi Corp., another trading company, and Mitsubishi Heavy Industries Ltd., plan to develop a gas-fired power generation project in areas where electricity supply is tight.

Following the accord by the premiers, the two countries will sign a memorandum of understanding on the three projects.

The signing ceremony will possibly be held in January, when Japanese Economy, Trade and Industry Minister Yukio Edano will visit India, the sources said.

Japan will also announce plans to invest USD 4.5 billion, or 350 billion yen, over the next five years to promote the Delhi-Mumbai Industrial Corridor, a USD 90 billion mega infrastructure project.

Hoping that it would be a part of High Speed railway corridor(bullet trains). This project has delayed by GOI for not taking interest from the long way before. Small Japanese delegations had visited here 2-3 times but could not find any meeting with concerned person . Hoping that it would be done on a priority basis.