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Archive for July, 2007

The DMIC Project

Posted by g.e. on July 16, 2007

Saw this in FT, on “the ambitious Delhi-Mumbai Industrial Corridor (DMIC), a $90bn project to develop the 1,483km swath of land between the country’s political and financial capitals.”:

In a reflection of this tentative approach, there are only about 350 Japanese companies active in India compared with some 30,000 in China, according to an official at the Japanese embassy in New Delhi. But corporate Japan is now aggressively seeking a bigger role, a development underscored by a high-powered Japanese trade mission to Delhi last week that produced pledges of closer ties between the two countries.

Conceived by Japan and India six months ago, the corridor will wind through six states and include industrial zones, sector-specific investment regions, a 4,000 MW power plant, ports and several airports as well as brown field and green field development.

The DMIC has been planned to run alongside large highway projects and a rail freight corridor also in the works that would shuttle goods to and from seaports. Several large cities will link to the corridor, including Jaipur, Ahmedabad and Pune.

The industrial corridor would help further India’s goal of boosting manufacturing and exports. “Japan is building a platform where India can become the gateway of exports to the UK, Middle East and Africa,” said Mr Amari.

He highlighted potential business opportunities for small and medium-sized Japanese enterprises in the corridor, though his delegation represented a who’s who of Japanese corporate heavyweights.

Xinhua notes further that:
The industrial corridor project, which was initiated during Indian Prime Minister Manmohan Singh’s Tokyo visit in December 2006, is likely to be finalized during Abe’s visit to India in the last week of August.

The two ministers also welcomed the announcement of Tokyo Stock Exchange (TSE) to introduce the Japanese Depository receipt (JDR) scheme here.

India can become the first destination for the scheme, that can become a financial resource for the DMIC project.

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