Thursday, 30 May 2013

India, Japan welcome progress made in Delhi Mumbai Industrial Corridor

India and Japan on Wednesday welcomed the progress made in the Delhi-Mumbai Industrial Corridor (DMIC).

In a joint statement issued here after delegation-level talks held here, Prime Ministers Shinto Abe and Dr. Manmohan Singh described the DMIC as a visionary India-Japan Strategic Partnership project which would enable India to access innovative, cutting edge technologies.

They also expressed satisfaction over the progress made in the implementation of the Western Dedicated Freight Corridor (DFC). They expressed satisfaction that in Phase-I the procurement of civil works was at an advanced stage and that the Engineering Service Consultants for Phase-II were already in position.

The two Prime Ministers also expressed satisfaction with the signing of the first tranche of the Main Loan Agreement for Phase-II totalling approximately 136 billion Yen.

Both leaders shared the view that all instruments of funding of the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA), including the Special Term for Economic Partnership (STEP) may be explored.

They appreciated the formation of the DMIC Project Implementation Trust in India as well as the listing of possible projects for Japan’s public and private financing as Japan’s USD 4.5 billion facility decided during the DMIC Task Force meeting at Tokyo in October 2012.

Both leaders also welcomed the 26 percent equity participation of the Japan Bank for International Cooperation (JBIC) in the DMIC Development Corporation (DMICDC), and the dispatch of an expert from JICA and board members from JBIC to DMICDC.

They reviewed the rapid progress made in absorbing next generation technologies through smart community projects and directed the relevant authorities to vigorously accelerate implementation of the seawater desalination project at Dahej, Gujarat, the Model Solar Project in Neemrana, Rajasthan, and the gas-fired independent power producer (IPP) project in Maharashtra.

The two prime ministers also stressed on the early realization of other smart community projects and directed that all necessary measures be taken to provide solutions for provision of gas at reasonable rates and for electricity and environmental regulations so that each project moves ahead speedily as a symbol of India-Japan strategic partnership.

Prime Minister Abe welcomed the relaxations of capital and financial regulations by India which could bring sustainable and stable economic growth in India by enhancing private sector investments and domestic production. The two Prime Ministers decided to continue consultations and work towards expeditious solutions to the remaining issues.

Recognizing the importance of development in the Chennai-Bengaluru areas, Prime Ministers Abe and Singh underlined their commitment to reinforce their cooperation.

Prime Minister Singh directed relevant authorities to accelerate the improvement of infrastructure such as ports, roads, bridges and industrial parks, as well as electricity and water supply, in Ennore, Chennai and adjoining areas and to monitor the progress utilizing the Tamil Nadu Investment Promotion Programme (TNIPP).

They welcomed the outcome of the preliminary study conducted by JICA for a Comprehensive Integrated Master Plan of the region and the signing of the Terms of Reference (TORs) for the Master Plan for the Chennai-Bengaluru Industrial Corridor (CBIC). The two Prime Ministers instructed their relevant authorities to accelerate their efforts to develop the Master Plan by the end of fiscal year 2014.

Noting the importance of increasing Japanese investment and business in India for economic growth of both countries, they expressed their expectation to advance cooperation between the Ministry of Commerce and Industry of India and the Ministry of Economy, Trade and Industry (METI) of Japan in the framework of India’s “National Manufacturing Policy” in such areas as industrial human resource development and business environment improvement.

According to the joint statement, the two leaders also highly appreciated the achievements of the Visionary Leaders for Manufacturing (VLFM) programme as a valuable Japanese contribution to the development of the manufacturing sector in India and welcomed the development of this programme as the new project ‘Champions of Societal Manufacturing’(CSM).

Prime Minister Singh noted Japan’s interest in supporting the introduction of high speed railway system in India. Prime Minister Singh appreciated Japan’s high level of expertise in designing and implementing High Speed Railway (Shinkansen) systems. Prime Minister Singh conveyed that India will plan such projects based on its infrastructure priorities, commercial viability and financial resources in India. The two Prime Ministers decided that the two sides will co-finance a joint feasibility study of High Speed Railway system on the Mumbai-Ahmedabad route.

Both recognised the importance of upgrading the speed of passenger trains on the existing Delhi-Mumbai route to 160-200 kmph, and welcomed the final report of the feasibility study undertaken with Japan’s cooperation, and confirmed that further consultation between the two countries would be continued to draw up a road-map.

The two prime ministers shared the view that business environment improvement is significant in enhancing bilateral investment and trade which would drive growth of both countries.

In this connection, they expressed their expectation that both countries would continue to work closely to achieve an enabling predictability and transparency in terms of business environment, including tax administration which is conducive to India-Japan economic cooperation and greater flow of investment, technology and services between the two countries.

They welcomed JETRO’s matching activities later this year to strengthen business partnership and consolidate supply chains between the two countries. (ANI)

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