Japan inks pact for Delhi-Mumbai Industrial Corridor project

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Japan PM Yukio Hatoyama and Indian Prime Minister, Dr. Manmohan S

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New Delhi: During the 3 day visit of India, Japanease Prime Minster Yukio hatoyama signed ambigious Rs. 3.6 lakh crore Delhi-Mumbai Industrial Corridor (DMIC) project. "The DMIC is conceptualised as a global investment and manufacturing destination with emphasis on expanding manufacturing and services base," Commerce and Industry Minister Anand Sharma said after signing the two pacts in New Delhi on Monday. The Minister also said the project will involve huge investment and initial projection points at a whopping Rs 3,60,000 crore. The DMIC Development Corporation entered into a pact with the Japan External Trade Organisation for collaborating with the environment-related projects and for transfer of Japanese expertise in developing and promoting 'smart communities' (eco-cities) around the DMIC project area. The Japan Bank of International Cooperation also singed a loan agreement totalling up to USD 75 million (Rs 330 crore) with India Infrastructure Finance Company to prepare plan for overall DMIC region and developing plans for investment in Phase-1. The DMIC Project Development Fund is envisaged to be set up with equal contribution from India and Japan. The Centre has already approved a grant of Rs 330 crore towards this.  The signing of the pact coincides with the visit of Japanese Prime Minister Yukio Hatoyama to the country who on Monday met Indian business leaders in Mumbai and New Delhi.  Sharma said the visit of the Japanese premier shows that both the countries are committed to take forward the bilateral cooperation and further accelerate economic engagements. The DMIC is planned to promote integrated development of industry and infrastructure in a band of 150-200 km on the either side of the Dedicated Railway Freight Corridor between Delhi and Mumbai, over a length of about 1,500 km.  The Delhi-Mumbai Dedicated Railway Freight Corridor is also being part-funded by the Japanese government.