- Region: Asia
- Equity Participations
March 29, 2013
- The Japan Bank for International Cooperation (JBIC; Hiroshi Okuda) signed on March 28 an agreement with the Government of India, three Indian government agencies*1 and Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) incorporated in India for subscribing to the new stocks to be issued by DMICDC. JBIC plans to have an equity stake of 260 million rupees. As a result, the share of each stockholder in the capital of DMICDC will become: 49% for the Government of India, 25% for the three Indian government agencies; and 26% for JBIC.
- As the core project executing agency for advancing the Delhi Mumbai Industrial Corridor (DMIC) Project,*2 a joint India-Japan regional development project, DMICDC has been cooperating with the central government and the governments of the six states*3 spanning the areas covered by the DMIC (hereafter the “DMIC region”) in preparing the Master Plan for infrastructure development; conducting project feasibility studies; and supporting the acquisition of the various government permits in each targeted city located in the DMIC region.
- With this equity participation in DMICDC and the planned dispatch of a board director to this corporation, JBIC intends to get involved in structuring infrastructure projects in the DMIC region from their early stages and thereby support the participation of Japanese companies in these projects. This will serve to develop infrastructure in this region, while leading to an increase in the opportunities for Japanese companies to participate in infrastructure business.
- JBIC will contribute to support Japanese companies for their overseas business development by resorting to its equity participation function and contribute to maintaining and improving the international competitiveness of Japanese industries.
- *1 Housing and Urban Development Corporation Ltd. (wholly-owned by the Government of India), India Infrastructure Finance Company Ltd. (wholly-owned by the Government of India) and Life Insurance Corporation of India (the largest life insurance company in India; wholly-owned by the Government of India).
- *2 The DMIC project is an India-Japan cooperation regional development project whereby a freight rail line is constructed between Delhi and Mumbai (funded by Japanese ODA loans totaling 45 billion yen) and such infrastructure facilities as industrial estates, logistics parks, power plants, roads, ports, residential areas and commercial facilities, will be developed near the line mainly by mobilizing private investment.
- *3 They are: Uttar Pradesh, Haryana, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra.