Date:14/12/2006 URL: http://www.thehindubusinessline.com/2006/12/14/stories/2006121405590100.htm

Back Japan keen to take part in rail freight corridor project

K. Venugopal

Modalities of tie-up yet to be worked out

Tokyo , Dec. 13

Japan is keen to participate in a significant way in the building of a dedicated railway freight corridor between New Delhi and Mumbai. The involvement could be in the shape of long-term, low-cost funds from the Japanese Government and the supply of equipment by Japanese firms.

This was indicated by the Principal Secretary to the Prime Minister, Mr T.K.A. Nair, on board the Prime Minister, Dr Manmohan Singh's special aircraft that flew him to Tokyo this evening at the start of a four-day bilateral visit.

India is already the largest recipient of the Japanese Government's Overseas Development Assistance, typically grants, but funds for this may come as loans albeit on easy terms. The modalities of the partnership are yet to be worked out, he said.

The Railways has sought to set up a separate track for freight trains from Mumbai and Kolkata to New Delhi as it is finding the existing corridor that is shared by passenger trains too congested for rapid freight movement.

Industrial corridor

Even as the Prime Minister was flying in, the Commerce Minister, Mr Kamal Nath, had reached an understanding with the Japanese Minister of Economy, Trade and Industry, Mr Akira Amari, on setting up a task force that would develop the concept of an industrial corridor.

The corridor will have several industrial estates and supporting infrastructure such as power facilities and rail connectivity to ports. Investments are expected to come not just from Japanese companies but from others as well.

The Japanese participation in the freight corridor project will be part of the increased engagement that it seeks with India.

In a statement prior to leaving New Delhi, Dr Singh noted, "In the evolving regional and international environment, India and Japan increasingly find that their long-term political, economic and strategic interests are converging."

He said that he would be discussing with the Japanese Prime Minister, Mr Shinzo Abe, moves toward a more comprehensive economic engagement.

Dr Singh will be addressing the Japanese Parliament on Thursday and a business luncheon hosted by the Japanese apex chambers on Friday.