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Two rickshaws driving on the wrong side of the road in Greater Noida

Industrial Township Greater Noida has roads but no traffic. So far, the politically developed space has not lived up to expecatations. | photo: bi-ConstructionNews

Japanese Government to Develop Eleven Industrial Townships in India

NEW DELHI/INDIA, June 2, 2015 – Under the reins of its new prime minister, rapidly industrializing India has been witnessing loads of investments in its infrastructure sector for some time. Japan is helping one of the fastest growing Asian economies to develop eleven industrial townships across the country.

The Japanese government is firming up its promise to help Indian Prime Minister Narendra Modi build India's infrastructure and promote domestic manufacturing, as it doubles its investment in the country, according to a report by Indian financial daily, the Economic Times.

Shinzo Abe’s government has identified 11 sites to set up industrial townships in India, which would serve as hubs for investments into the country. These include Tumkur in Karnataka, Ghilot in Rajasthan, Mandal in Gujarat and Supa in Maharashtra. Japan will also provide soft-skills training to Indian workers in the manufacturing sector to help bridge the demand-supply gap. "Japan aims to double its investment in India to about $35 billion in the next five years. The move would help strengthen bilateral economic ties. They are already the primary investors in our economic corridors," said a government official, adding that the details are being firmed up. The move will strengthen domestic manufacturing, supporting the 'Make in India' campaign and ensuring transfer of technology.

Greater Noida: Knowledge Park I, II, III is mostly deserted

Greater Noida Knowledge Parks I, II, III feature business
space but no businesses. | photo: bi-ConstructionNews

Japan takes leading role

The development of the townships will be assisted by the respective state governments, the Department of Industrial Policy & Promotion and Japan's Ministry of Economy, Trade & Industry. Japan is the fourth-biggest foreign investor in India, contributing 7% to the total FDI inflows since April 2000, according to the Indian Authorities. Japan brought in $1.7 billion worth of FDI in 2013-14 and $18 billion between April 2000 and February 2015. The other areas identified for the townships include Ponneri in the state of Tamil Nadu, Neemrana in Rajasthan, Jhajjar in Haryana and the integrated industrial township in Greater Noida.

Japanese Banks provide funding

Japan will extend its industrial township advance soft-skills development project to impart training to workers in the manufacturing sector. Japanese Minister for Trade Yoichi Miyazawa met Indian Minister of State for Commerce and Industry Nirmala Sitharaman in New Delhi in the last week of May, when they signed a five-point agenda for the development of Japanese industrial townships, promotion of investment and infrastructure development, further development and cooperation in the IT sector, enhancing cooperation in strategic sectors and advance Asia-Pacific economic integration.

Japan has already invested $4.5 billion in the first stage of the Delhi-Mumbai industrial corridor through lending by Japan International Cooperation Agency and Japan Bank for International Cooperation. They together hold 26% equity in the project.
bi