Japan approves Indian infrastructure investment
29 December 2011
The Prime Ministers of Japan and India have reached wide-ranging agreements on Japan's support for infrastructure projects in India.
The deals include the promise of US$ 4.5 billion in funding from Japan over the next five years to support the Delhi-Mumbai Industrial Corridor (DMIC) project.
Indian Prime Minister Manmohan Singh and the Prime Minister of Japan, Yoshihiko Noda, emphasised revived cooperation between the two countries in the wake of the disastrous 11 March earthquake and tsunami in Japan.
They plan to speed up work on phase II of the DMIC project - a US$ 100 billion development programme that aims to build an industrial zone spanning six states.
It includes plans for a 1483 km high speed freight line, three ports, six airports and a six-lane intersection-free expressway connecting India's political and financial capitals.
"The two Prime Ministers felt that the DMIC Project would redefine the character of infrastructure growth in India through advanced technology and green growth," a joint statement said.
The two Prime Ministers also agreed to accelerate the development of projects to support the DMIC scheme including a seawater desalination project at Dahej, Gujara; large-scale photo-voltaic power generation at Neemrana Industrial Area in Rajasthan and a gas-fired independent power plant in Maharashtra.
Under the agreement, Japanese agencies and companies would also provide technical expertise for the projects.
Meanwhile, the two Prime Ministers stressed the importance of infrastructure development in the areas between Chennai and Bengaluru, where a number of Japanese companies have made direct investments to establish manufacturing bases.
Infrastructure such as ports, industrial parks and their surrounding facilities in Ennore, Chennai and the adjoining areas are being considered for redevelopment.
Other areas of infrastructure investment discussed between the two leaders included in the development of expressways in India and the use of Japanese technologies and expertise in the development of India's high-speed rail system.