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                                                  Press Releases July, 2007
                            

Press Releases
July, 2007

           Press Information Bureau
             Government of India
              ***

          Date                                                                  Release                                             

Index of Six Infrastructure Industries (Base: 1993-94=100) May 2007

PRESS NOTE

The Index of Six core-infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 234.1 (provisional) in May 2007 and registered a growth of 8.7% (provisional) compared to a growth of 7.2 % in May 2006.  During April-May 2007-08, six core-infrastructure industries registered a growth of 8.1%(provisional) as against 7.2% during the corresponding period of the previous year.

Crude Petroleum

Crude petroleum production (weight of 4.17% in the IIP) registered a negative growth of 1.6% (provisional) in May 2007 compared to a growth rate of 1.2% in May 2006.  The Crude petroleum production registered a growth of (-)0.1% (provisional) during April-May 2007-08 compared to (-) 0.3% during the same period of 2006-07.

Petroleum Refinery Products

Petroleum refinery production  (weight of 2.00% in the IIP) registered a growth of 14.9% (provisional) in May 2007 compared to growth of 12.1% in May 2006. The Petroleum refinery production registered a growth of 15.0% (provisional) during April-May 2007-08 compared to 12.6% during the same period of 2006-07.

Coal

Coal production (weight of 3.22% in the IIP) registered a growth of 0.9% (provisional) in May 2007 compared to a growth rate 8.3% in May 2006. Coal production grew by 0.7% (provisional) during April-May 2007-08 compared to an increase of 5.9% during the same period of 2006-07. 

Electricity

Electricity generation (weight of 10.17% in the IIP) registered a growth of 9.3% (provisional) in May 2007 compared to a growth rate 5.1% in May 2006. Electricity generation grew by 9.0% (provisional) during April-May 2007-08 compared to 5.5% during the same period of 2006-07.

Cement

Cement production (weight of 1.99% in the IIP) registered a growth of 9.4% (provisional) in May 2007 compared to 6.8% in May 2006. Cement Production grew by 7.4% (provisional) during April-May 2007-08 compared to an increase of 9.4% during the same period of 2006-07.  .

Finished (carbon) steel

Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of 11.8% (provisional) in May 2007 compared to 10.7% (estimated) in May 2006. Finished (carbon) Steel production grew by 10.1 (provisional) during April-May 2007-08 compared to an increase of 10.4% during the same period of 2006-07. 

N.B: Data are provisional. Revision has been made based on revised data obtained.

 

PERFORMANCE OF SIX INFRASTRUCTURE INDUSTRIES May 2007 (Weight in IIP: 26.68 %)
Base Year: 1993-94
Sector-wise Growth Rate (%) in Production
Sector	Weight (%)	May-06	May-07	Apr-May 06-07	Apr-May 07-08
Crude Petroleum	4.17	1.2	-1.6	-0.3	-0.1
Petroleum Refinery Products	2.00	12.1	14.9	12.6	15.0
Coal	3.22	8.3	0.9	5.9	0.7
Electricity	10.17	5.1	9.3	5.5	9.0
Cement	1.99	6.8	9.4	9.4	7.4
Finished steel (carbon)	5.13	10.7	11.8	10.4	10.1
Overall	26.68	7.2	8.7	7.2	8.1
Source of data: Concerned Ministries/Departments/Organization(s)

 

 

 

 

 

 

 

 

 

 

 

 

Month	INDEX			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	195.8	210.0	225.6	7.3	7.4
May	200.9	215.3	234.1	7.2	8.7
June	196.7	211.9		7.7
July	193.3	214.1		10.8
August	198.4	211.3		6.5
September	192.9	213.2		10.5
October	207.3	227.7		9.8
November	202.4	221.6		9.5
December	214.7	233.0		8.5
January	219.6	237.6		8.2
February	205.2	220.6		7.5
March	231.3	254.3		9.9
Apr –May	198.3	212.6	229.9	7.2	8.1
N.B: Indices and Growth rates are provisional

  

CRUDE PETROLEUM PRODUCTION
Weight: 4.17%
Month	Production (in Thousand tonnes)			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	2802	2752	2791	-1.8	1.4
May	2830	2863	2818	1.2	-1.6
June	2792	2826		1.2
July	2751	2863		4.1
August	2411	2702		12.1
September	2572	2813		9.4
October	2679	2928		9.3
November	2563	2815		9.8
December	2642	2924		10.7
January	2770	2901		4.7
February	2542	2666		4.9
March	2844	2934		3.2
April-May	5632	5615	5609	-0.3	-0.1
Note: 1. Cumulative total may not tally with monthly total;            2. Production data and Growth rates are provisional. Source: Ministry of Petroleum & Natural Gas

  

OUTPUT OF PETROLEUM REFINERY PRODUCTS
Weight: 2.00%
Month	Production (in Thousand tonnes)			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	8947	10118	11642	13.1	15.1
May	9624	10784	12396	12.1	14.9
June	9896	10940		10.5
July	10096	11370		12.6
August	10042	11257		12.1
September	9776	11083		13.4
October	9719	11473		18.1
November	9853	11467		16.4
December	10754	11423		6.2
January	10857	11854		9.2
February	10098	11241		11.3
March	11089	12577		13.4
April-May	18570	20903	24038	12.6	15.0
Note: 1. Cumulative total may not tally with monthly total           2. Output and Growth rates are provisional. 3.   The figure are estimated on the basis of data on refinery production (in terms of crude throughput) Source: Ministry of Petroleum & Natural Gas

  

COAL PRODUCTION
Weight: 3.22%
Month	Production (in Million tones)			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	30.50	31.53	31.69	3.4	0.5
May	30.67	33.23	33.54	8.3	0.9
June	28.54	31.95		11.9
July	28.14	31.12		10.6
August	29.03	29.09		0.2
September	29.42	29.23		-0.6
October	32.96	33.65		2.1
November	34.69	36.38		4.9
December	38.39	39.50		2.9
January	38.32	42.15		10.0
February	36.90	39.35		6.6
March	43.82	48.49		10.6
April-May	61.17	64.76	65.23	5.9	0.7
Note : 1. Cumulative total may not tally with monthly total            2. Production data and Growth rates are provisional. Source : Department of Coal

  

ELECTRICITY GENERATION
WEIGHT: 10.17%
Month	Generation (in Gwh)			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	50413.2	53394.9	58026.7	5.9	8.7
May	52942.6	55630.8	60814.1	5.1	9.3
June	50948.9	53450.6		4.9
July	49781.1	54224.2		8.9
August	52145.2	54295.8		4.1
September	48694.5	54289.3		11.5
October	52217.7	57292.5		9.7
November	49405.3	53721.3		8.7
December	52257.1	57095.6		9.3
January	53759.6	58320.6		8.5
February	50225.4	51902.3		3.3
March	54719.9	59075.3		8.0
April-May	103355.8	109025.7	118840.8	5.5	9.0
Note : 1. Cumulative total may not tally with monthly total;            2. Generation and Growth rates are provisional.           3. Electricity generation data includes also imports from Bhutan   Source: Ministry of Power

  

CEMENT PRODUCTION
Weight: 1.99%
Month	Production (Thousand Tonnes)			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	12240	13730	14475	12.2	5.4
May	12630	13490	14760	6.8	9.4
June	12010	13410		11.7
July	11160	12720		14.0
August	11160	11480		2.9
September	10845	12630		16.5
October	12218	13370		9.4
November	11599	12970		11.8
December	12968	14010		8.0
January	13571	14550		7.2
February	12757	13500		5.8
March	14650	15450		5.5
April-May	24870	27220	29235	9.4	7.4
Note : 1. Cumulative total may not tally with monthly total;            2. Production and Growth rates are provisional  Source : Department of Industrial Policy & Promotion

  

FINISHED   (CARBON) STEEL PRODUCTION
Weight: 5.13%
Month	Production (in Thousand Tonnes)			Growth Rates (%)
	2005-06	2006-07	2007-08	2006-07	2007-08
April	3414	3758	4079	10.1	8.5
May	3370	3732	4171	10.7	11.8
June	3414	3762		10.2
July	3398	3871		13.9
August	3639	3977		9.3
September	3574	3946		10.4
October	3874	4277		10.4
November	3847	4196		9.1
December	3961	4356		10.0
January	4017	4350		8.3
February	3728	4227		13.4
March	4308	4938		14.6
April-May	6784	7490	8250	10.4	10.1
Note : 1. Cumulative total May not tally with monthly total; 2.       Production Data and Growth rates are provisional.   Source: Ministry of Steel

  

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry

New Delhi, 10^th July, 2007 

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REHABILITATION PACKAGE TO REVIVE 33 CLOSED TEA GARDENS AND BENEFIT MORE THAN
30,000 WORKERS 

New Delhi: July 6, 2007 

            The Rehabilitation Package for Closed Tea Gardens is expected to result in revival of 33 closed tea gardens, which employ more than 30,000 workers. The package will allow these tea gardens to avail loans and subsidies under the Special Purpose Tea Fund (SPTF) Scheme for rejuvenation and replantation.    

            Shri Kamal Nath, Minister of Commerce & Industry, has said that: “As a medium and long-term measure, a major stepping up of the rate of replantation and rejuvenation holds the key to competitiveness of the Indian tea industry, given the high age profile of tea bushes throughout the country. Over 2 lakh hectares which fall in the vulnerable category of low yielding areas is to be targeted for replantation and rejuvenation”.   Referring to the revival of closed tea gardens, the Minister observed that “on revival, the gardens would infuse additional capital in plants and machinery resulting into increasing in the crop yields and total tea production for domestic and export purposes”. 

            In order to address the problems of the closed tea gardens, the government had appointed expert committees to make an in-depth study of gardens lying closed in the States of West Bengal, Kerala, Assam and Tripura and suggest a package of measures for their viability and revival.  Considering the reports and recommendations of the committees, the government has approved a Rehabilitation Package for Closed Tea Gardens.  The package is aimed at reviving the closed tea gardens in the interest of tea garden workers and considering the importance of the industry in the export performance of the country. 

            The Package provides for restructuring of existing outstanding bank loans of closed tea gardens by converting the same into term loans with a moratorium period of 5 years. The recovery of the outstanding converted loans would start from 6^th year onwards and upto 10^th year. The accumulated penal interest on the loans will be waived. The banks will charge a simple rate of interest of 11% per annum on the restructured loan.  There will be a moratorium of one year for payment of the interest. The accumulated simple interest is to be shared equally by the banks, central government and the beneficiaries to the extent of one-third each.  The loans advanced by the Tea Board to such gardens would waive. After financial restructuring as given above these gardens will become eligible to obtain loan and subsidy from the Tea Board under Rs.4500 crore SPTF scheme for rejuvenation and replantation. They will also become eligible to get 25% subsidy for upgradation and modernisation of their factories. An interest subsidy at the rate of 3% on the working capital loans would be provided by the government for a period of 5 years on the working capital loans that will be taken by such gardens for resumption of their operation.    Chairman, Tea Board, will be the nodal officer for implementing the Rehabilitation package.  

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VIETNAM REQUESTS MARKET ECONOMY STATUS FROM INDIA
DEPUTY TRADE MINISTER OF VIETNAM MEETS ASHWANI KUMAR 

New Delhi: July 6, 2007 

            Vietnam has requested India to grant market economy status under the WTO mechanism and stated that its economy is well qualified for the same.   The request was communicated by Mr. Nguyen Danh Vinh, Deputy Trade Minister of Vietnam during his meeting with Dr. Ashwani Kumar, Minister of State for Industry, here today.   Dr. Kumar informed the Vietnamese delegation that a decision on this issue would require a thorough examination and necessary deliberations at various levels. 

            Mr. Vinh also emphasised the need to speedily conclude the Indo-ASEAN Free Trade Agreement and made specific requests for greater market access on certain agricultural products of importance to Vietnam such as coffee, tea and pepper.   Dr. Kumar observed that the same products are also important to India both in terms of economic value and employment and any decision on the issue would require a win-win situation for both countries. 

             Vietnam expressed keenness to take bilateral trade with India to a much higher level and hope that greater Indian investment would flow into Vietnam.    While Vietnam had bilateral trade in excess of US $ 10 billion each with China and US its trade with India has just touched US $ 1 billion.  Dr. Kumar also agreed with the need for greater economic engagement between the two countries and highlighted energy sector as one particular area where Indian companies can invest in Vietnam.   “Trade relations with Vietnam are very much a part of India’s Look East Policy”, he said. 

            The Vietnamese Minister proposed setting up of a Forum for Trade and Investment Policy Exchange which could provide a platform for engagement of officers and businessmen from both countries to engage on trade and investment relations, in the area of investment promotion, tourism, trade facilitation etc.    Dr. Kumar agreed with the value of such a Forum and both countries would work towards setting up the same.   

            Major items of export to Vietnam include oilmeals, drugs & pharmaceuticals, primary & semi-finished iron and steel etc., while major import items from Vietnam are spices, coal, coke, organic chemicals etc. 

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IMPORT OF SENSITIVE ITEMS DURING APRIL 2007 

New Delhi: July 3, 2007 

            The total import of sensitive items for the period April 07 has been Rs.1118 crores as compared to Rs.1328 crores during the corresponding period last year thereby showing a decrease of 15.8%. The gross import of all commodities during same period of current year was Rs.17635 crores as compared to Rs.12535 crores during the same period of last year. Thus import of sensitive items constitute 10.6% and 6.3% of the gross imports during last year and current year respectively.   

Imports of edible oil, cotton & silk, fruits & vegetables (including nuts), products of SSI, spices and marble & Granite have shown a decline at broad group level during the period. Imports of items viz. automobiles, rubber, Alcoholic beverages and milk & milk products have shown increase during the period under reference. 

In the edible oil segment, the import has decreased from Rs.810 crores last year to Rs.625 crores for the corresponding period of this year. The import of both crude oil as well as refined oil have gone down by 23% and 21.1% respectively.  The fall in edible oil import is mainly due to significant decrease in import of Soya-bean oil and its fractions (Crude), which has gone down by 62%.  

Imports of sensitive items from Indonesia, Thailand, Germany, Japan, Pakistan IR, Bhutan, United Arab Emirates etc. have gone up while those from Argentina, China P RP, United States of America, Malaysia, Egypt A RP, Sri Lanka DSR etc. have shown a decrease. 

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TASK FORCE TO FINALISE CONCEPT PAPER ON DELHI-MUMBAI INDUSTRIAL CORRIDOR
PROJECT BEFORE PM ABE’s VISIT – JDR SCHEME FOR TOKYO STOCK EXCHANGE TO BE
UTILISED FOR DEVELOPMENT OF DMIC PROJECT
KAMAL NATH AND AKIRA AMARI SIGN JOINT STATEMENT

New Delhi: July 3, 2007 

Shri Kamal Nath, Minister of Commerce & Industry, and Mr. Akira Amari, Minister of Economy, Trade and Industry of Japan, has directed the Task Force to finalise a concept paper on Delhi-Mumbai Industrial Corridor (DMIC) Project before Prime Minister of Japan Shinzo Abe’s visit to India scheduled for August 2007. The two Ministers welcomed the announcement of Tokyo Stock Exchange (TSE) to introduce the Japanese Depository receipt (JDR) scheme.  India can become a first destination for such scheme that can be also utilised as one of the financial resources for the development of the DMIC project.  This is indicated in the Joint Statement signed by the two Ministers here last night following the conclusion of their discussions on DMIC project. 

Mr. Akira Amari and Shri Kamal Nath co-chaired the first meeting of the Japan-India Policy Dialogue (JIPD) between the two Ministers on the occasion of Minister Amari’s visit to India from June 30 to July 3, 2007.   Minister Amari was accompanied by the Japanese business delegation headed by Mr. Osamu Suzuki, Chairman and CEO of Suzuki Motor Corporation.   At the meeting, the Ministers had extensive discussions to advance the relevant elements of the agenda of the “Japan-India Special Economic Partnership (SEPI)”, which was announced by the leaders of the two countries on December 15, 2006 in Tokyo.  The Ministers also discussed relevant global and regional economic issues such as Doha Development Agenda (DDA), Comprehensive Economic Partnership in East Asia (CEPEA) and Economic Research Institute for ASEAN and East Asia (ERIA).   The Ministers decided to cooperate towards the successful conclusion of the DDA by the end of 2007. 

During the course of the meeting, the Ministers exchanged views on the DMIC project, which is a flagship cooperation project between the two countries, based on the discussion at the Task Force for the DMIC project, co-chaired by Secretary, Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry of India and Vice Minister, Ministry of Economy, Trade & Industry of Japan.   The Ministers welcomed the inputs made and interests shown by the business leaders from both countries. 

The Ministers reaffirmed the importance of facilitating the business and technology match making between the two countries in a range of sectors that include food processing and other manufacturing industries.  The Ministers welcomed the MOU between the Confederation of Indian Industries (CII) and the Japan External Trade Organisation (JETRO) signed on July 2, 2007 which aims to facilitate closer business interaction between enterprises in India and Japan. 

The Ministers reviewed the status of India-Japan Economic Partnership Agreement (EPA) / Comprehensive Economic Partnership Agreement (CEPA) negotiations and directed the negotiators to expedite the conclusion of negotiations within the agreed timeframe. 

The Ministers discussed some of the outstanding trade-related issues between India and Japan and decided that the relevant authorities on both sides need to continue the dialogue for satisfactory resolution of these issues.

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ENDING GSP PREFERENCES FOR GOLD JEWELLERY AND BRASS LAMPS
LIKELY TO LEAD TO JOB LOSSES: WARNS KAMAL NATH 

New Delhi: July 3, 2007 

            Shri Kamal Nath, Minister of Commerce & Industry, has warned that the decision of the US Government to end the GSP (Generalised System of Preferences) for gold jewellery and brass lamps from India could lead to a number of jobs being lost in the jewellery sector in India.    In reply to a question after his recent speech at the Carnegie Endowment meet in Washington asking about India’s reaction to the US decision, Shri Kamal Nath said that “GSP is a unilateral programme of the US government and is not a result of negotiations with GSP beneficiaries.   Hence, it is upto US government to decide on how it wishes to administer the programme.   However, the decision is likely to lead to a number of jobs being lost in the jewellery sector in India, specially among vulnerable groups of society”. 

            On 28^th June, 2007, the US Administration decided not to renew the Competitive Needs Limitation (CNL) Waiver for gold jewellery and brass lamps from India, thereby ending the GSP preference.    The Federal Register Notice is expected to be published soon and the changes will be effective within seven days of publication.   GSP has been withdrawn from 8 out of 9 products for which the review was carried out under the new regulations. The only country for which it has been continued is Columbia for mini carnations. 

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DELHI-MUMBAI INDUSTRIAL CORRIDOR TO PASS THROUGH MADHYA PRADESH: KAMAL NATH 

New Delhi, 2 July, 2007 

The Delhi Mumbai Industrial Corridor (DMIC) will pass through Madhya Pradesh as well, Shri Kamal Nath, Minister of Commerce and Industry, announced at a joint press conference with the visiting Japanese Minister of Economy, Trade and Industry, here this afternoon. The massive project, with an investment requirement of US $ 90 billion spread over seven years is expected to transform the industrial landscape of over half a dozen states through which it will pass, including Madhya Pradesh, Shri Kamal Nath said. 

The project will see major expansion of infrastructure and industry – including industrial clusters and rail, road, port, air connectivity – in the states along the route of the Corridor.  

Conceived to be developed as a Global Manufacturing and Trading Hub, the project is expected to double employment potential, triple industrial output and quadruple exports from the region in 5 years. The total employment to be generated from the project – to be launched in January 2008 – is 3 million, the bulk of which will be in the manufacturing/processing sectors.  

The first phase of the project is scheduled to be completed by 2012, the Minister said. 

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EXPORTS UP BY OVER 20%
INDIA’S FOREIGN TRADE: APRIL-MAY, 2007 

New Delhi: July 2, 2007 

          Cumulative value of India’s merchandise exports for the period April-May, 2007 was US $ 22436.39 million ($ 22.4 billion) or Rs.92944.16 Crore as against US $ 18639.50 million ($ 18.6 billion) or Rs.84243.20 Crore during the same period last year, registering an increase of 20.37%. Merchandise exports during May, 2007 were valued at US $ 11861.28 million which was 18.07 % higher than the level of US $ 10045.99 million during May, 2006. In rupee terms, exports touched Rs.48371.98 crore, which was 6.04% higher than the value of exports during May, 2006.  

          India’s Imports during May, 2007 were valued at US $ 18077.81 million representing an increase of 26.36 % over the level of imports valued at US $ 14306.76 million in May, 2006. In Rupee terms, imports increased by 13.49 %. Cumulative value of imports for the period April-May, 2007 was US$ 35713.14 million (Rs.148053.58 Crore) as against US$ 26841.29 million (Rs.121304.73 Crore) during the same period last year           

          Oil imports during May, 2007 were valued at US $ 4740.29 million which was 2.99% lower than oil imports valued at US $ 4886.44 million in the corresponding period last year.  Oil imports during April-May, 2007 were valued at US $ 9165.20 million which was 1.01% higher than the oil imports of US $ 9073.62 million in the corresponding period last year.  

           Non-oil imports during May, 2007 were estimated at US $ 13337.52 million which was 41.58 % higher than growth on non oil imports of US$ 9420.32 million in May, 2006. Non-oil imports during April-May, 2007 were valued at US$ 26547.94 million which was 49.42% higher than the level of such imports valued at US$ 17767.67 million in April-May, 2006.                            

          The trade deficit for April-May, 2007 was estimated at US $ 13276.75 million which was higher than the deficit at US $ 8201.79 million during April-May, 2006. 

Tables showing India’s exports, imports and trade balance, according to the Directorate General of Commercial Intelligence & Statistics (DGCI&S), is attached.   

Press Information Bureau Government of India ***
EXPORTS & IMPORTS: (US $ Million)
(PROVISIONAL)
	MAY	APRIL-MAY
EXPORTS (including re-exports)
2006-2007	10045.99	18639.50
2007-2008	11861.28	22436.39
%Growth 2007-2008/ 2006-2007	18.07	20.37
IMPORTS
2006-2007	14306.76	26841.29
2007-2008	18077.81	35713.14
%Growth 2007-2008/ 2006-2007	26.36	33.05
TRADE BALANCE
2006-2007	-4260.77	-8201.79
2007-2008	-6216.53	-13276.75
EXPORTS & IMPORTS: (Rs. Crores)
(PROVISIONAL)
	MAY	APRIL-MAY
EXPORTS (including re-exports)
2006-2007	45616.13	84243.20
2007-2008	48371.98	92944.16
%Growth 2007-2008/ 2006-2007	6.04	10.33
IMPORTS
2006-2007	64963.15	121304.73
2007-2008	73723.84	148053.58
%Growth 2007-2008/ 2006-2007	13.49	22.05
TRADE BALANCE
2006-2007	-19347.02	-37061.53
2007-2008	-25351.86	-55109.42
Figures for 2006-07 are the latest revised whereas figures for 2007-08 are provisional.

 

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US $ 90 BILLION DELHI-MUMBAI INDUSTRIAL CORRIDOR PROJECT AT AN ADVANCE STAGE OF
FINALISATION
KAMAL NATH AND AKIRA AMARI DISCUSS LANDMARK INDO-JAPAN PROJECT WITH
STAKEHOLDERS 

New Delhi: July 2, 2007 

          The Delhi-Mumbai Industrial Corridor (DMIC) project, with an estimated investment of US $ 90 billion, is at an advance stage of finalisation.   This was indicated by Shri Kamal Nath, Minister of Commerce and Industry, at the Indo-Japan CEO Luncheon Meeting here today, which he attended along with Mr. Akira Amari, Minister of Economy, Trade and Industry, and members of the Japanese business delegation.    

          Stating that DMIC will become yet another fine example of Indo-Japanese collaboration, Shri Kamal Nath referred to India’s successful experience with Japan in the development of the Delhi metro and said he was confident that the DMIC would add another successful chapter to the saga of Indo-Japan partnership in India. 

          “Stakeholders have taken a decision to set up 5 investment regions and 5 industrial regions, one in each state in the Phase I.  The first phase is scheduled to be completed by 2012, in synchronization with the Dedicated Rail Freight Corridor.   Later on, more such investment regions will be identified in consultation with the states.   The approach in DMIC project is to work within the present system of policies and incentives and provide global quality infrastructure to spur the industrial growth further.   Feasibility of infrastructure development will come by coverage of a large impact area and the excellent rail, road and port connectivity.   We have set ourselves a project goal of doubling employment potential and tripling the industrial output”, the Minister said, adding that the investment of US $ 90 billion would be spread over a 7-year period. 

          The project is expected to transform the industrial landscape across half-a-dozen Indian states leading to the rapid development of industrial as well as physical infrastructure along the route of the corridor.   

          Given the importance of this massive project and its positive economic fallout, especially in terms of employment, Shri Kamal Nath said: “I am of the view that though DMIC is a North-Western India specific project, such initiatives should not be restricted to a particular area, but replicated all over India.   Other Indian states like West Bengal have already expressed their willingness to replicate this model and I expect initial studies on the proposed eastern India corridor to begin early next year.   With India stepping up the pace of infrastructure development, I invite Japanese companies to utilise the investment opportunities arising out of India’s thrust on infrastructure.    This is your chance to convert your investments into productive business opportunities”. 

          Today’s interaction as well as the visit of the Japanese delegation in connection with the DMIC has been organised by the Department of Industrial Policy & Promotion (DIPP) Ministry of Commerce and Industry; Ministry of Economy, Trade & Industry (METI) of Japan in association with the Confederation of Indian Industry (CII) and the Japan External Trade Organisation (JETRO). 

          Mr. Amari, accompanied by a delegation of Japanese business executives of around 15 leading Japanese companies headed by Mr. Osama Suzuki, Chairman of Suzuki Motor Corporation/Japan, is currently on a visit to India to participate in discussions relating to the “Delhi Mumbai Industrial Corridor” and the meeting of the “Second Japan-India Energy Dialogue” between the two countries. 

          Mr. Amari had a bilateral interaction with Shri Kamal Nath this evening.   Mr. Shigeyuki Tomita, Senior Vice Minister of Finance of Japan, also called on Shri Kamal Nath later today.  

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SB/NR/MRS

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