India Post News Service

NEW DELHI: India and Japan signed here on Monday a MoU to pave the way to develop Delhi-Mumbai Industrial Corridor (DMIC) which would entail trade and connectivity. The project will commence after the final approval from both the governments during Prime Minister Abe's visit to New Delhi in August this year.Speaking on the occasion, Minister of Commerce and Industry, Kamal Nath stated that the industrial corridor will boost economic growth and infrastructural progress in India.

DMIC is also expected to generate three billion jobs, out of which, 60 percent are new jobs in the areas of manufacturing and post harvest food processing. DMIC will pass through the states of Delhi, Haryana, Uttar Pradesh, Rajasthan, Gujarat and Maharashtra.

Japan, being the largest contributor of infrastructural development in India has decided to help again in this world class project. DMIC will provide high quality infrastructure, enhanced connectivity, Highways, Ports, logistic hub, knowledge centre, SEZ's etc."Stake holders have taken a decision to set-up four investment regions and five industrial regions, one in each state in the first phase, which will be completed by 2012 in synchronization with the dedicated D-M Rail Freight Corridor", added Nath at an Indo-Japan CEOs meeting organized by Confederation of Indian Industry (CII).Japanese companies, particularly small and medium enterprises are expected to invest over $10bn in the proposed corridor during the first phase itself.

The land, Nath emphasized, would be acquired strictly on voluntary basis while a rehabilitation program would be launched along side.The Japanese minister said that the project will be made in compatibility between industrial enhancement and environment and human resourcesQuestioned about the source of investments, the Japanese Minister explained, "The funds will come from a whole basket of sources which includes the Government of India, Japanese government (loans), and the Japanese investors along with the Indian companies in Japan through IDR (Investment Depository Receipt).

"The Japanese Minister showed full confidence in Kamal Nath and said that implementation of this project will be good for India and also for the Japanese people as it will create enormously attractive opportunities for small and medium enterprise.