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| Japanese firms invest $1.6bn in India cos |
| Indivjal Dhasmana/PTI / Tokyo Jul 29, 2009, 11:42 IST |
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India has attracted investment worth $1.6 billion for projects in the fields of power, steel, construction and engineering SEZs from Japanese companies.
Besides, deals worth $1 billion are also in advanced stages of negotiations with Japanese counterparts, sources in the visiting Assocham delegation, led by its President Sajjan Jindal, said today.
The delegation is on a week-long visit to Japan as part of the Assocham efforts to promote special economic zones(SEZs).
The biggest deal worth $1 billion was brokered by JSW Steel, company sources said.
The deal in the field of steel, power and heavy equipment will be formally inked in a couple of days, the sources said.
One of the Japanese partners of the deal is the Toshiba Group, a globally renowned conglomerate, the sources said while refusing to give names of other partners and details.
Raheja Developers, a real estate company owning the biggest engineering SEZ in India, also attracted deals worth $0.60 billion from Japanese firms, company sources said.
The sources, however, did not give details of the deal, saying formal agreements are yet to be signed.Sources in other companies also said they are in advanced stages of negotiations for deals worth $1 billion.
Besides Jindal and Raheja, the delegation includes SEZ developers Sri City, Maharashtra Airport Development Company, Assam Company, Oil Field Warehouse and Services, AEZ Infratech, SKIL Infrastructure, JVL Agro Industries and Bengal Integrated Auto Industrial Park.
Earlier at conferences in the Japanese capital and nearby city Yokohama, Indian participants impressed upon Japanese representatives about the vast advantages provided by SEZs in India.
They tried to allay apprehensions about many aspects of these zones, including hassles related to land acquisition.
At a Tokyo conference, Japan-India Business Co-operation Committee (JIBCC) Chairman Yoshihiro Watanabe expressed concern that land acquisition in India can take a long time.
L B Singhal, Director General of the Export Promotion Council of EOUs and SEZs, said land has been acquired in 568 SEZs that have been approved in India.
Of this, 315 zones have been notified also, Singhal said. "Notified means that after acquisition of land, the developers have completed all formalities required to make these SEZs operational and they are on the verge of starting their operations," he said.
In fact, 91 SEZs have started operations as well, Singhal added. Investment of over $22 billion have been made in these SEZs in the last three years, he said, adding exports from these zones have gone up from $7.2 billion to approximately $21 billion in the last three years despite difficult circumstances in the overseas market.
Trying to remove misconception that SEZs are only exports zones, Navin Raheja of Raheja Developers said Japanese investors can invest in these zones hassle-free and cater to domestic demand as well.
However, they have to pay duties in case SEZ units sell their products in domestic market and have to be net foreign exchange earner over a period of five years, he explained.
"Come and start your work, concentrate on development of your products as fast as possible with best qualities. We have a large market, evolving market, there is so much of consumption demand, that you would not like to miss," he said.
Minister (Economic & Commercial) in Indian embassy R Ramanujam said the SEZ policy has addressed many concerns that Japanese investors raise while thinking of going to India.
"When we talk of investment in India, I hear about lack of infrastructure, I hear about labour policies, I hear about bureaucracy, I hear about taxation, land. All these issues are addressed in one policy — SEZ policy," he added.
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