Chennai-Bangalore corridor is different from Delhi-Mumbai one: JICA

Japan International Cooperation Agency (JICA) is getting ready to fund the second industrial corridor in India between Chennai and Bangalore. Japan’s sole official development assistance (ODA) agency is funding a study for the corridor even though Delhi-Mumbai Industrial Corridor, its first such engagement in India, is yet to take off.

Shinya Ejima, chief representative of JICA in India told Business Standard the agency was waiting for a shortlist of projects that would form part of Chennai-Bangalore Industrial Corridor (CBIC) from the Indian government. Some 26 early bid projects were already identified during the preliminary study. The Japanese government had earlier announced $4.5 billion investment in India.

Ejima said CBIC was different from DMIC in its characteristics. “It has already attracted investment including from Japan. This study is to upgrade infrastructure in order to promote industry and economic activity. We are trying to promote additional investment. Many automobile companies from countries like Japan and America are already there.” JICA is also looking for further investment along the corridor from service industry including hospitals and IT.

The master planning for CBIC is being done for 2030. In addition, JICA is identifying certain urgently required infra projects. These include construction of peripheral ring road between the two cities and upgradation of cargo handling at Chennai and Ennore ports including access to them. States of Tamil Nadu and Karnataka have many transportation projects on the shelf. The master plan for CBIC is expected to be finalised by the fourth quarter of 2013-14.

Ejima said progress in the Indian infrastructure sector was good. “If we compare to 20 years ago, infrastructure has become much better. This is a huge country. Demand for infrastructure is enormous.” JICA finds itself in important infrastructure projects including DMIC, the western arm of dedicated rail freight corridor and Delhi metro. He said their finance have been utilised effectively.

On the western arm of dedicated rail freight corridor, he said 97% of land acquisition work has been completed.

Though he admitted, public private partnership projects seemed to be a struggle but once economy returns to the growth trend, investors would be interested in various private projects. “Infrastructure will be further accelerated. Overall, I am not frustrated with the slow development of infrastructure. We appreciate the great effort made by the government,” he said.

Currently, JICA has official development assistance commitment of Japanese Yen 2,065 billion of which 49% is in the transport sector. Another major chunk of 20% is in energy which includes power distribution projects and 21% in water projects.