India, Japan Ink Pacts Worth $17.4 Billion
Japan commits investments worth Rs 1,11,545 crore over the next five to six years.
The meeting between Indian Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Thursday paved the way for low-cost capital worth about Rs 1.1 lakh crore ($17.4 billion) over the next five to six years.
The projects backed by these investments are expected to be completed by 2023, said Norio Maruyama, press secretary of Japan’s foreign affairs ministry.
The two-day bilateral meet saw Japan extend soft loans to six projects for 50 years at a minimal interest rate of 0.1 percent.
These five loan projects will be funded using the Official Development Assistance of Japan’s foreign ministry:
- ¥100 billion: Mumbai-Ahmedabad High Speed Rail
- ¥8.52 billion: Upgradation of environment management and ship recycling in Alang and Sosiya in Gujarat
- ¥25.903 billion: Kolkata East-West Metro Project-III
- ¥38.666 billion: North east road network connectivity improvement project Phase-II
- ¥16.825 billion: Gujarat Investment Promotion program
Japan will also provide ¥2.2 billion ($1.9 million approx.) aid to construction of an international convention centre in Varanasi.
The ¥100 billion or Rs 58,000 crore investment in the high-speed rail network is only the first tranche. The two nations also have an in-principle agreement to invest Rs 30,000 crore in a second tranche over the next 2-3 years.
Thursday’s commitment is in addition to the more than Rs 1,50,000 crore that India has already received in Official Development Assistance in the last four years.
Besides, the joint venture of Suzuki Motor along with Toshiba and Denso will invest in setting up a factory in Gujarat to manufacture lithium-ion batteries. The foundation of the factory has been laid and it will produce batteries for the next generation of hybrid and electric vehicles, Modi said while addressing India Japan Business Forum.