www.thesuniljain.com

Japanese sunrise PDF Print E-mail
Tuesday, 28 May 2013 02:13
AddThis Social Bookmark Button

 

India needs infrastructure, Japan needs to invest

 

Prime Minister Manmohan Singh’s Japan visit, postponed last year due to elections there, has important ramifications not just for India’s Look East policy and civil nuclear cooperation, a large part of India’s infrastructure investment is all set to come from Japan. The creation of new industrial cities along Delhi-Mumbai Industrial Corridor (DMIC) is estimated to cost $90-100 billion eventually and, as FE reported, the first of such cities in phase 1 of the project—a R70,000 crore city in Dholera in Gujarat—is likely to see the first set of contracts awarded in the next few months. Other projects, such as 2 million square feet exhibition-centre-cum-air-cargo complex in Delhi will be ready to award contracts in another 3 months. While the Dedicated Freight Corridor (DFC) along which the DMIC cities are to be built is likely to be delayed by 2-3 years due to problems of land acquisition in a few states, as FE has reported today, the project has finally begun to move forward. Contracts for a 640-km stretch of the 3,300-km project are ready to be handed over; another 300-km stretch will see bids being opened at the end of June. Most important, the Railways have already acquired 80% of the land required for the project. The project has transformational potential for the Railways since, once complete, this means freight traffic can move at higher speeds than it does today. And since the DMIC cities have been planned along the corridor, they will benefit from the far better logistics of the freight corridor.

That, it has to be underlined, is the plan. Whether the plan fructifies is what India needs to guarantee. Too many projects in the recent past got held up due to permissions not coming through on vital stretches. For years after the government cleared oil blocks, the defence ministry didn’t allow licensees to drill in the area; several road developers have cried off projects due to the lack of environmental clearances. In the case of the DFC, the project gets derailed if even a stretch of a few hundred kilometres gets held up. The Prime Minister’s real job of boosting Japanese investments begins after he returns home.

 
 

You are here  : Home Infrastructure/Urbanisation Japanese sunrise