Japanese Companies to Grab Key Contracts in Mumbai-Ahmedabad Bullet Train Project: Report
The bullet train project, 81 percent of which is being funded by Tokyo, will connect Mumbai, the financial hub of the nation, with Ahmedabad in Modi's home-state Gujarat.
Tokyo, Jan 18: At least 70 per cent of the contracts for the core supply and development of the $17 billion Mumbai-Ahmedabad bullet train project will be taken over by the Japanese companies, said a report.
The finding is in stark contradiction to the agreement reached by Tokyo and New Delhi for the high-speed rail project, where 'Transfer of Technology' and 'Make in India' - the tie-up with Indian companies for production - were reported as two inherent clauses.
Achal Khare, the managing director of National High Speed Rail Corp Ltd (NHSRCL), whom Reuters spoke to, said one of the reasons behind the Japanese firms refraining to tie-up with Indian counterparts is their reservation about the "difference in the culture and systems of Japan from the culture and systems in India".
As per the claims made in the report, one of the prime Japanese companies part of the project -- Nippon Steels was close to ink the deal with India's Jindal Steel and Power Ltd. However, the potential tie-up fall apart after the former raised quality concerns.
The fear of inefficiency on the Indian side compelled Nippon to also dismiss the proposal to tie-up with state-owned Steel Authority of India (SAIL), which is the key supplier of rail components to the Indian Railways.
With Japanese companies occupying the driver's seat in the bullet train project, the 'Make in India' policy of Prime Minister Narendra Modi is likely to take a hit, the report claimed.
With larger share of contracts going to the Japanese firms, the job opportunities will remain minimal for the Indian professionals. The Indian workforce would mostly be sought for the physical manpower work.
Similarly, on the supply side, the Japanese firms would only consider the Indian firms for raw materials like cement and other generic infrastructure components, the report added.
A senior official of NITI Aayog, the government's macro-level think-tank unit, told Reuters that Indian companies should not expect a bigger share in manufacturing at this stage.
The bullet train project, 81 percent of which is being funded by Tokyo, will connect Mumbai, the financial hub of the nation, with Ahmedabad in Modi's home-state Gujarat.
(The above story first appeared on LatestLY on Jan 18, 2018 02:02 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).