Japan lines up $30 bn for Indian core sector

Akira Amari, Japan's minister for economy, trade and industry, is likely to announce an investment of $30 billion in infrastructure projects during his visit as the head of the largest ever Japanese delegation towards the end of this month.

The package would include building a high-speed freight railway system between New Delhi and Mumbai, a port in Gujarat, and industrial complexes in Rajasthan.

The delegation, comprising over 60 executives of 15 companies, will visit New Delhi and Mumbai and have meetings with industry bodies like the CII and Ficci.

However, Japanese steel companies, which have long-standing ties with their Indian counterparts, will not be a part of the delegation.

India is a major supplier of iron ore to Japan. In fact, Mitsui owned the country's second largest iron ore exporter, Sesa Goa, till a couple of months ago. Nippon Steel is looking at a joint venture with Tata Steel.

Nisshin Steel recently announced plans for a carbon- and stainless steel pipe joint venture, while Kobe is in talks with the Chowgule group for an iron nugget plant in India. Also, the Japan Iron & Steel Federation is considering providing energy-saving expertise to India's steel industry.

Amari's visit is expected to be followed by Japanese Prime Minister Shinzo Abe's in August. Prime Minister Manmohan Singh visited Tokyo in December and agreed to boost business ties between the two nations.

Sources close to the development said Japan wanted to invest in India's infrastructure and make it a hub for production and exports to Europe and West Asia.