Cars to cargo, ACs to planes: Japanese PM Shinzo Abe’s visit brings deals

NEW DELHI(DNA): Gujarat is set to host Japanese Prime Minister Shinzo Abe for the annual Indo-Japan meet on September 13-14 at Mahatma Mandir in the capital, Gandhinagar. The Memorandum of Understanding (MoUs) expected to be signed at the meet, in the presence of Prime Minister Narendra Modi, will bring in development in sectors from cars to cargo and from trains to aerospace, and draw huge investments, to the tune of Rs 5 lakh crore, from as many as 15 Japanese firms as well as the government.

PM Modi raises a toast with his Japanese counterpart, Shinzo Abe, in Tokyo earlier

Chief secretary Dr JN Singh, while talking to DNA, said, “There are many sectors in which there will be cooperation between India and Japan. Besides the bullet train project, ties will be formulated in the sectors of aerospace, automobiles manufacturing, and maritime.”

The bullet train will be India’s first, between Ahmedabad and Mumbai, and will cut travel time between the two cities from 7–8 hours to a little over two hours. Japan is a pioneer in high-speed rail networks, and its Shinkansen bullet train is among the fastest in the world.

“A training and skill upgradation centre will be developed in Vadodara as a part of the High Speed Rail Training Institute. The institute, to become functional by 2020, will get equipment such as a simulator and other facilities that exist in Japan. This will train 4,000 staffers for bullet train and 300 railway officials. This will also help the Delhi Mumbai Industrial Corridor,” Singh said.

Modi and Abe will inaugurate Maruti-Suzuki’s car manufacturing plant and Honda’s two-wheeler plant near Bahucharaji in the northern part of the state . The first model of Maruti-Suzuki’s Baleno, which will be exported to foreign markets, will be launched at the meet. The Japanese government is also going to give soft loans of Rs 1,000 crore for development of an industrial park at Sanand which includes a township, and Rs 600 crore for the Alang Ship Breaking Yard near Bhavnagar.

Well-placed sources from the government said, “Baba Kalyani from Bharat Forge is looking forward to defence and aerospace manufacturing in Gujarat with the cooperation of Japanese firms and an MoU is likely to be signed at the meet. Another multicrore agreement relating to the maritime cargo handling will be signed.”

JAPAN TO FUND HIGH-SPEED RAIL

The High Speed Rail Corporation, which will execute the over Rs1 lakh crore Ahmedabad-Mumbai Bullet Train project, will receive Rs88,000 crore or 80 per cent of the funds from the Japanese government at an interest of 0.1 per cent. The fund would have to be repaid over a period of 50 years of which the first 15 years would be grace period. The train will cut down the travel time between Ahmedabad and Mumbai to just over two hours as against the current seven.

Companies likely to sign MoUs

Company Sector

Moresco Oil Lubricant

Toyoda Gosei Auto parts

Jtekt Auto parts,

Sanden Car ACs Ventilation

Sojitz Automobile,

Aerospace, etc

Topre Auto parts

Asti Technology

Meidoh Metal, auto

Sanko Gosei Electronic components

Murakami Chemicals

Unicharm Healthcare

Daikin AC system