PM Modi, Abe pledge cooperation in infrastructure sector
Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Monday pledged to enhance cooperation in the infrastructure sector.
The two Prime Ministers issued a joint statement after their meeting. The two countries have stated that the Japanese side will launch a feasibility study by the Japan International Cooperation Agency (JICA) of a project for setting up of a 10 MW canal-top grid connected solar photovoltaic (PV) power plant in Gujarat as a model for next generation infrastructure.
Further, the Indian side appreciated Japanese yen loan pledges of 50 billion yen (approximately 500 million USD) for the Public-Private Partnership Infrastructure Financing Project to the India Infrastructure Finance Company Limited (IIFCL), and of around 15.6 billion yen (approximately 156 million USD) for the Guwahati Sewerage Project in Assam.
Both sides also emphasized that the Delhi-Mumbai Industrial Corridor (DMIC) Project should result in a new era of industrial infrastructure development with the creation of new generation Smart Community projects across six states in India.
Both sides acknowledged that in addition to new manufacturing hubs, the DMIC Project will envisage the development of infrastructure linkages like power plants, assured water supply, high capacity urban transportation and logistics facilities as well as important interventions like skill development programme for providing employment opportunities to youth.
India and Japan also welcomed the progress made in the development of industrial cities at Dholera in Gujarat and Shendra-Bidkin in Maharashtra, and integrated industrial townships at Greater Noida in Uttar Pradesh and Vikram Udyogpuri near Ujjain in Madhya Pradesh.
India and Japan also expressed their expectation for introducing Japanese technologies and expanding Japanese investment in Mass Rapid Transit Systems (MRTS) with the possibility of adopting the most suitable financing scheme. Both sides directed the respective relevant authorities to start a feasibility study by JICA on a potential yen loan project for the MRTS between Gurgaon and Bawal in Haryana.
India and Japan also welcomed the progress achieved in the Smart Community projects, namely the Logistics Data Bank project, the Mega Solar Power project at Neemrana and the Seawater Desalination project at Dahej. Further, both sides instructed their officials to accelerate the implementation of these Smart Community projects. The Indian side assured to resolve the outstanding issues regarding the Seawater Desalination project at Dahej, including tariff, water quality parameters, water sales, etc. Both sides hoped that these projects will demonstrate the uniqueness of cutting-edge Japanese technology in India.
Both sides also welcomed the rapid progress made in the Chennai-Bengaluru Industrial Corridor (CBIC), including the finalisation of the perspective plan and the designation of three cities, viz. Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka, as potential industrial nodes. The two nations instructed their officials to expeditiously finalise the Master Plan and the Development Plan of the three cities by the end of March 2015.
Prime Minister Modi directed the relevant authorities to ensure the timely development of the infrastructure stipulated in Tamil Nadu Investment Promotion Programme (TNIPP), such as road development and power and water supply.
Taking into account the positive effects of the TNIPP on India's business environment improvement and infrastructure development, India and Japan agreed that a similar programme may be extended to the state of Karnataka.
In addition to this, both sides also welcomed the signing of a Framework of Cooperation between the Ministry of Road Transport and Highways, Government of India, and the Ministry of Land, Infrastructure, Transport and Tourism of Japan in the Roads and Road Transportation Sector.
India also sought Japanese support in upgrading the ship-breaking yard at Alang Sosiya in Gujarat.
Agreeing to this, Japan underlined its policy to promote people-centered investment with an emphasis on inclusiveness to have as many people as possible enjoy economic benefits of investment, enhanced social resilience to climate change, natural disasters and capacity building. The Japanese side emphasized that promotion of such investment will lead to sustainable development.
Both sides urged and supported the Asian Development Bank to enhance its capacity to address the region's infrastructure and connectivity needs.
Prime Minister Modi, who is also scheduled to meet Emperor Akihito, is presently on a three-day visit to Japan that will conclude on September 3.
(Posted on 02-09-2014)