Abe’s gift to Modi: Japan pledges $33.8 bn for Indian infra projects
Tokyo: Pledging to enhance bilateral cooperation, Japan today promised $33.8 billion assistance to India for the next five years towards funding next generation infrastructure projects, smart cities, rejuvenation of Ganga river and introduction of bullet trains.
Japanese funding will also be made available for Public Private Partnership (PPP) projects in Indian government's initiatives in the fields of manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain and rural development.
This was stated in a joint statement after meeting between visiting Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.
"Abe expressed his intention to (extend) 3.5 trillion yen of public and private investment and financing from Japan, including Overseas Development Assistance (ODA), to India in five years..." it added.
Japan also promised to help India build high speed railway 'Shinkansen system' for the Ahmedabad - Mumbai route, it said.
"Prime Minister Abe expressed his readiness to provide financial, technical and operational support to introduce Shinkansen system, for which Prime Minister Modi expressed his appreciation.
"The two Prime Ministers look forward to the completion of the Joint Feasibility Study on High Speed Railway system on Ahmedabad - Mumbai route," the statement said.
The declaration further said Abe pledged Overseas Development Assistance (ODA) loan of 50 billion yen ($479 million) to India Infrastructure Finance Company Limited (IIFCL) for a PPP infrastructure project in India.
The two Prime Ministers welcomed the progress in the ongoing flagship projects of India-Japan economic partnership such as the Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC) and Chennai-Bengaluru Industrial Corridor (CBIC), while committing to accelerate their implementation.
Modi also invited Japanese investments in the development of new smart cities and industrial parks along these corridors.
Abe accepted Modi's invitation to visit India for the next Annual Summit in 2015.
"Appreciating Japan's contribution to the development of urban mass rapid transport system in India, Prime Minister Modi sought Japan's association with Ahmedabad Metro Project.
Prime Minister Abe expressed Japan's willingness to support the project in a mutually beneficial manner," said the joint statement.
Recognising the critical dependence of their economies on imported energy sources and vulnerability to supply shocks, the two leaders affirmed their intention to further strengthen
energy cooperation through the India-Japan Energy Dialogue.
They shared the intention that India and Japan would explore a higher level of strategic collaboration in the global oil and natural gas market, including through joint procurement of LNG, upstream development of oil and gas, and joint efforts to promote flexible LNG markets, including through relaxation of destination clauses.
Abe and Modi also welcomed enhanced cooperation on utilising highly efficient and environmentally-friendly coal-fired power generation technology and progress on cooperation in Clean Coal Technology (CCT).
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