Corridor needs more Japanese funds

NEW DELHI: With India doubling the ambition for the proposed Delhi-Mumbai industrial corridor from an initial $50 billion to $90-100 billion, all attempts will be made to convince the Japanese side to step up funding for the project when Japanese industry, trade and economy minister Akira Amari comes calling on New Delhi and Mumbai early next week. A series of meetings with government officials and top industry representatives from both sides have been lined up where detailed presentations on the concept paper and the required investments would be made.

Speaking to ET, government sources said while Japan had given its commitment to fund the project, the exact amount of Japanese investment has not been firmed up. “Since our project has become more ambitious, obviously we expect more investment from the Japanese side.

We hope to make a convincing presentation during the Japanese delegation’s visit,” an official said.Sources added the loose ends of the proposal would be tied during Mr Amari’s visit and the project may be finalised during Japanese Prime Minister Shinzo Abe’s expected India visit in August. The project was initiated during Indian Prime Minister’s Tokyo visit in December 2006. Mr Amari will be accompanied by a group of 15 top Japanese business heads, led by Suzuki Motor chairman Osamu Suzuki.

The project — which centres around development ofinfrastructure along the 1,483-km-long dedicated freight corridor between New Delhi and Mumbai — involves building of airports, setting up of several logistics, agroprocessing parks and special economic zones, creating 4,000 mw of power generation facility and two ports in Gujarat and Maharashtra.

Representatives from six states including Uttar Pradesh, Haryana, Rajasthan, Delhi, Gujarat and Maharashtra, which will benefit from the project, will also hold consultations with the Japanese delegation.The first phase of the project is expected to be completed by 2012. The second and the last phase of the project is expected to be wrapped up by 2016.