India, Japan to Increase Cooperation in Energy Sector

India, Japan to Increase Cooperation in Energy Sector

In a bid to strengthen the commercial ties between the two countries, India and Japan today agreed to boost cooperation in infrastructure projects in DMIC, railways and energy sectors at their first Economic Dialogue here.

Besides the Delhi-Mumbai Industrial Corridor, the two countries also agreed to accelerate cooperation in infrastructure development in the areas along the Chennai- Bengaluru Industrial Corridor.

"We discussed the entire gamut of issues in which our two countries cooperate. In particular, we agreed on how to accelerate cooperation in the flagship DMIC," External Affairs Minister S M Krishna, who along with his Japanese counterpart Koichiro Gemba co-chaired the Dialogue, told reporters here.

A joint statement issued by the commerce ministry said that the two sides shared the views on the importance of further promoting investments and supportin g industries in the region through improving infrastructure such as ports, industrial parks and their surrounding facilities in Ennore, Chennai and the adjoining areas and stable power supply.

The two sides also decided to consider the possibility of strengthening their bilateral cooperation in the energy sector through establishing statistics databases for various segments including high energy consuming industries.

"We also discussed cooperation in the railways sector including the ongoing Dedicated Freight Corridor project as well as the possibility of India obtaining High Speed Rail technology from Japan," Krishna said.

India's ambitious USD 90 billion DMIC project is aimed at creating industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor, which is under implementation. Japan is giving financial and technical aid for the project, which will cover seven states totalling 1,483 kilometers.

On the issues, Gemba said, "India and Japan will cooperate each other to achieve success in specific projects under DMIC. Both sides will work together to materialize the master plan on the infrastructure development in the areas between Chennai and Bengaluru."

Last year, Japan has expressed intention to invest USD 4.5 billion (about Rs 23,400 crore) in the DMIC project over the next five years.

Gemba also said that both the sides would promote cooperation in infrastructure development in India including in the area of high speed railway trains.

"Both sides will work to promote comprehensive economic partnership in East Asia," he said adding "we are at the stage to further develop bilateral economic relationship".

The two-way trade between the countries has increased to USD 18.31 billion in 2011-12 from USD 13.82 billion in 2010-11.

The energy issue was discussed at the fifth meeting of the India-Japan Energy Dialogue.

"The two sides decided to consider the possibility of further co operation in the establishment of statistics database in the sector concerned, including high energy consuming industries where energy consumption have been growing in India in recent years," the External Affairs Ministry said in a release after the meeting.

Planning Commission Deputy Chairman Montek Singh Ahluwalia, Japanese Minister for Economy, Trade and Industry Yukio Edano as well as senior officials from both sides participated in the discussions.

"Considering the big share of India and Japan in the world's demand for LNG, the two sides confirmed that the two countries could play an important role in expanding the market in the future, while ensuring the stability and transparency of the market. They confirmed they will work on methane hydrates," it added.

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