Japan pledges to invest $35 billion for infra projects in India

By Accommodation Times News Services

PM in JapanPrime Minister Narendra Modi on his official visit to Japan from 30 August – 3 September 2014, held the Annual Summit meeting with Prime Minister Shinzo Abe. The two Prime Ministers issued a Joint Statement thereafter, in which both countries urged and supported the Asian Development Bank to enhance its capacity to address the region’s infrastructure and connectivity needs. Japan will play an increasingly important role in India`s economic transformation and development.

Narendra Modi said, “Prime Minister Abe has pledged a qualitatively new level of Japanese support and partnership for India`s inclusive development, including transformation of India`s manufacturing and infrastructure sectors. He has announced his intention to realise 3.5 trillion Yens, or USD 35 billion, or Rs. 2,10,000 crores, of public and private investment and financing to India over the next five years.”

This will fund next-generation infrastructure, connectivity, transport systems, smart cities, manufacturing, clean energy and skill development. Significantly, both countries also agreed on a blueprint for the transfer of technology in the manufacture of defence equipment.

Further Modi said, “India`s progress and development is not only a big economic opportunity that will benefit both countries, but it will be strengthen democracy globally and contribute to stability and prosperity in our region and the world. A successful India and a successful Japan will be of benefit to both countries. Even more, the relationship will be a force of peace, stability and prosperity in Asia and the world.”

The Japanese side underlined Japan’s 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. Japan emphasized that promotion of such investment will lead to sustainable development. The Indian side welcomed this policy.

The Japanese side announced the launch of 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.

Both sides 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.

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