Ahead of the meeting between the prime ministers of India and Japan, the two countries on Monday signed two agreements for developing the Rs 360,000-crore (Rs 3,600 billion) Delhi-Mumbai Industrial Corridor project.
The first memorandum of understanding was signed between the DMIC Development Corporation and the Japan External Trade Organisation for promoting eco-friendly townships and industries.
The two will support both Japanese and Indian companies to find appropriate business partners. DMICDC will identify sites for model projects for "smart" communities and coordinate with government agencies.
Another pact was inked between the Japan Bank for International Cooperation and the India Infrastructure Finance Company Ltd for a loan of $75 million (about Rs 330 crore). The proceeds of the loan will be used for establishing the project development fund to advance the DMIC project.
The fund, with equal contribution from the governments of India and Japan, will finance project structuring, conducting feasibility studies and getting necessary approvals. The Indian government has already approved Rs 330 crore (Rs 3.3 billion) as its contribution.
"The new township on this corridor will help movement of large population to these places. This project will help us in faster movement of goods through the corridor, and will generate employment, infrastructure and also have a huge multiplier effect for wealth generation," said Commerce Minister Anand Sharma after the two sides signed the agreements.
DMICDC chief executive officer and managing director Amitabh Kant said work on the project would start in about five months and would end by 2017.
The 1,483-km corridor will cross six states - Delhi, Uttar Pradesh, Maharashtra, Gujarat, Rajasthan and Haryana. The project will develop infrastructure, including industrial estates, power plants, and logistics parks by focusing on a 150-kilometre band on both sides of the rail freight corridor being planned between Delhi and Mumbai.
