Date:16/06/2006 URL: http://www.thehindubusinessline.com/2006/06/16/stories/2006061604290100.htm

Back Japanese industrial cluster in India soon

Anil Sasi

A novel cluster
Cluster to streamline investments from Japan.
2,000-acre site for the project has been identified in Haryana
Mitsui and Company given the mandate to develop the project
Project to cater to Japanese SMEs

Tokyo , June 15

The Government is working on plans to set up a Japanese industrial cluster to streamline flow of investments from the country. TheJapanese diversified conglomerate Mitsui and Company has been given the mandate to develop the "Japanese City". The project would be distinct from the special economic zone (SEZ) scheme and would cater to companies from Japan, especially the small and medium enterprises (SME), the Union Commerce and Industry Minister, Mr Kamal Nath, said here.

Speaking at the sidelines of the World Economic Forum's East Asia Summit here, he said that a 2,000-acre site has been identified in Haryana for the project, a first in the country. "We are looking at flow of investments from Japanese companies, especially the SME sector, which are a repository of technology but have been slow to invest in India," he said.

He added that major Japanese companies such as Toyota, Honda and Suzuki have a significant presence in India already, but what India lacks is substantial investment by Japanese SMEs. "We are looking to scaling up their presence by setting up this industrial cluster," he said.

Ban on mangoes goes

Meanwhile, Mr Nath's effort to get the Japanese Government to lift the ban on the import of Indian mangoes has also borne fruit. The Japanese Minister of Agriculture, Forestry and Fisheries, Mr Shoichi Nakagawa, announced that it had lifted the two-decade-old embargo. Japan had imposed a ban on the import of Indian mangoes in 1986 because of suspected pest infestation by fruit flies. After the ban is lifted by July, the Agricultural and Processed Food Products Export Development Authority is planning a "mango festival" in Japan, which is likely to import mangoes from Andhra Pradesh, Gujarat, Maharashtra, Uttar Pradesh and West Bengal.

Funding for irrigation

Also, Japan Bank for International Cooperation has agreed to fund the Pench Diversion Scheme for Irrigation in Chhindwara (Madhya Pradesh). The Pench Diversion Scheme, which costs Rs 564 crore, will provide irrigation to almost one-lakh hectares in Chhindwara and the Seoni districts of Madhya Pradesh.

Mr Nath also said that a joint study group to look into a Comprehensive Economic Partnership Agreement (CEPA) with Japan will submit its report in two-three months. "And by the year-end, we expect to see a CEPA with Japan in place," he said.