The Hindu : Business : Japan keen to invest in infrastructure projects

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Wednesday, Jul 04, 2007
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Japan keen to invest in infrastructure projects

Staff Correspondent

‘Consider JDRs for funding DMIC project’

— PHOTO: VIVEK BENDRE

JOINING FORCES: Ratan Tata (left), Chairman, Tata Sons, Akira Amari (centre), Minister of Economy, Trade and Industry, Japan, and Jamshyd N. Godrej, Chairman and Managing Director, Godrej and Boyce Manufacturing Co., at an interaction organised by CII in Mumbai on Tuesday.

MUMBAI: Japan is keen to invest in India’s infrastructure projects and to make it a hub for production and exports to Europe and Asia, according to Akira Amari, Minister of Economy, Trade and Industry, Government of Japan.

The Minister was addressing the media here at a seminar jointly organised by the Confederation of India Industry (CII), the Union Ministry of Commerce and Industry, and the Japan External Trade Organization (JETRO) on the Delhi-Mumbai Industrial Corridor (DMIC). Mr. Amari is leading a delegation of 15 businessmen from Japan led by Osamu Suzuki, Chairman, Suzuki Motors, and this visit comes ahead of the Japanese Prime Minister, Shinzo Abe’s visit to India later in August.

PM’s initiative

The DMIC was initiated by Prime Minister Manmohan Singh during his visit to Japan in December last year. It is likely to be finalised during the Japanese premier’s visit. At the meeting, presentations were made by the States of Maharashtra, Gujarat, Rajasthan, Haryana and Uttar Pradesh through which the DMIC will traverse.

Explaining the DMIC, Ajay Dua, Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce, said, the 1,483-km long dedicated rail freight corridor would create certainty in movement of goods as also faster transport links to sea ports. The $7 billion project (Rs. 30,000 crore) would bring about development of industry and investment clusters along the track at nodes identified by the State governments concerned through which the DMIC would pass. The first phase of the project was slated to commence in 2008 and would be completed in four years. Mr. Dua said the project would look at ‘Brownfield’ areas rather than ‘Greenfield’ areas “as they are more cost effective. We will also have a regional approach rather than isolated projects.”

Taizo Nishimuro, Chairman of the Board, Tokyo Stock Exchange Inc., invited investors to consider Japanese depository receipts (JDRs) as a form of funding for the DMIC project. Mr. Amari said JDRs could possibly be a means for Indian companies to raise funds in the Japanese market for infrastructure development and that leading Indian corporates had evinced interest in JDRs.

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