Japan keen on Delhi-Mumbai corridor

Economic Times, India

Japan keen on Delhi-Mumbai corridor

IANS

30 June 2007

NEW DELHI: Ahead of Japanese Prime Minister Shinzo Abe’s visit here late August, India and Japan have stepped up negotiations on an economic pact and the multi-billion dollar Mumbai-Delhi industrial corridor with Trade Minister Akira Amari beginning a five-day visit here Saturday.

Japan’s Minister of Economy, Trade and Industry Amari is leading a delegation of top 15 corporate honchos, led by Suzuki Motor chairperson Osamu Suzuki.

Amari will meet Commerce Minister Kamal Nath and deputy chairperson of the Planning Commission Montek Singh Ahluwalia and discuss with them a host of trade-related issues with special focus on fleshing out the Delhi-Mumbai industrial corridor project.

India has fine-tuned an ambitious plan for the industrial corridor project and will make a presentation to the Japanese side to increase funding for the project, now expected to cost $90-100 billion.

The project entails the development of infrastructure along the 1,483-km dedicated freight corridor between New Delhi and Mumbai that includes the building of airports, setting up of several agro-processing parks and special economic zones, creating 4,000 MW of power generation facility and two ports in Gujarat and Maharashtra.

The industrial corridor project, which was initiated during Indian Prime Minister Manmohan Singh’s Tokyo visit in December 2006, is likely to be finalised during Abe’s visit to India in the last week of August.

The first phase of the project is expected to be completed by 2012. The second and the last phase of the project are expected to be completed by 2016.

Japan is keen to invest in India’s infrastructure and make it a hub for production and exports to Europe and West Asia.

Amari’s visit will be followed by a delegation of Japanese officials who will come here for another round of negotiations on a comprehensive economic partnership agreement between the two countries.

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  • Japan keen on Delhi-Mumbai corridor6-September-2008 | Dharmarajan

    The project that is being embarked upon has seen to show very little or no effect at all so far to my knowledge. Discussion among business community and investors both from India and Japan who are keen to participate in this wonderful project, following were main issues that is harming the progress of the project.

    - land acquisition along the route by center / state government
    - no formal treaty signed so far on this for clear guidelines on commitment and legalization
    - no effective nodal authority formed for proper co-ordination
    - no clear picture emerges on the participation of the respective state governments with the center
    - no project authority has been announce so far

    I would be grateful to the users, who could validate what I had opined above and share valuable data , information on this front for the benefit of the investing and business community as a whole.

    I sincerely wish wise minds get together in the interest of both the countries and get involved with some serious discussions so that a proper treaty is signed at the soonest. The CEPA is already due this year end / early 09. Our Commerce Minister may like to speed up the negotiations which are apparently in its final stages so that a viable agreement is in place before the cost escalation eats up on the viability of the whole project.

    The positive economic effects of this project need not be elaborated too much which is quite impressive from all angles. There can not be any place for negative thoughts, political pulls for this project would benefit one and all.

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