Jul. 31 – Japan has agreed to invest in US$1.6 billion worth of projects in India’s power, steel, construction and engineering special economic zones, reports the Business Standard.
The deals are set to be formalized soon and were part of India’s Assocham week-long trip to Japan to drum up interest for its special economic zones.
In addition to those projects, another US$1 billion worth of investments are in its advanced stages. Another deal worth US$1 billion was between a Japanese investor and one of India’s largest steel companies, JSW Steel.
One of the Japanese investors is leading technology company, the Toshiba Group. India’s largest engineering SEZ, managed by the Raheja Developers, was able to attract $0.60 billion worth of projects from Japanese firms.
The Assocham delegation included SEZ developers Maharashtra Airport Development Company, Sri City, Assam Company, Oil Field Warehouse and Services, AEZ Infratech, SKIL Infrastructure, JVL Agro Industries and Bengal Integrated Auto Industrial Park.
According to the Business Standard, Japanese investors expressed concern that land acquisition for business would take too long in India. The Assocham tried to dispel that misconception that SEZs are only good as exports zones. The same zones can also be used as a way of entering the local market as well.
Navin Raheja of Raheja Developers was quoted by Business Standard as saying: “When we talk of investment in India, I hear about lack of infrastructure, I hear about labour policies, I hear about bureaucracy, I hear about taxation, land. All these issues are addressed in one policy — SEZ policy.”