Power shortage, a worry for Japanese investors in TN

Infrastructure deficiency, low transparency in systems and procedures and inconsistent policy were the major concerns of Japanese companies considering investments in India, according to Masanori Nakano, Consul-General of Japan in Chennai.

India is second only to China globally as an attractive destination for overseas investments by Japanese companies in the medium term.

But the survey of over a 1,000 companies by the Japan Bank for International Cooperation showed nearly half of them were concerned about the infrastructure deficiency in India, apart from the lack of transparency in rules and regulations, complicated tax system and shifts in policies, Nakano said.

Infra projects

Gujarat, after Tamil Nadu, is attracting keen interest from Japanese investors. In the southern State, the power shortage is a serious issue driving up costs for investors.

The Japan International Cooperation Agency has completed a preliminary study of infrastructure needs, with focus on power and transportation, in the Chennai-Bangalore industrial corridor.

Japanese companies are keen on partnering with India in infrastructure projects, said at a meeting on infrastructure business cooperation between Japan and Tamil Nadu.

Port facilities

M. Velmurugan, Executive Vice-Chairman, Tamil Nadu Industrial Guidance and Export Promotion Bureau, said the State has charted out plans to double its present capacity of about 18,000 MW of power generation over the next five years.

From the middle of this year, the power shortage would be addressed.

Chennai has three major ports in close proximity including the L&T Port at Kattupalli to the North where over 1.2 million TEUs of container capacity is available.

With car exports taking off from Chennai ports, a multilevel car park with RORO facility is being planned on DBFOT basis, he said.

Shinya Fujii, Director-General, Japan External Trade Organisation, said the port at Kattupalli is a welcome addition to the port infrastructure for Japanese companies looking at exports.

The private port will be competitive in terms of usage costs as compared with the public sector ports – the Chennai Port and the Ennore Port, he said.

But the road connectivity is as much an issue as it is to the Ennore Port as the companies use the same roads. It is up to the State Government to upgrade the linkage, he said.