Recently it was decided by the government of India that the Chennai metro rail coaches which were to be supplied by Japanese companies will be built in India. This whole process will come in action along with the Japanese funding agency JICA.
Japanese companies either will set up their plants in India or will collaborate with local Indian companies dedicated to the work of manufacturing coaches of metro rail. This decision of the Indian government along with Japanese funding agency will give a push to ‘Make in India’ scheme.
Details of the agreement signed between the Indian government and Japanese funding agency is given below:
- Japan International Cooperation Agency (JICA) will extend the amount of about 20,196 crores for the second phase of the Chennai metro project.
- Assembly of 75% coaches will be done in India which will reduce the cost on the basis of recently awarded costs.
- For this, the Japanese companies can open their plants in India or can collaborate with local Indian companies for producing the coaches of Chennai metro rail.
- India will share the recently awarded costs with the Japanese rolling stock manufactures.
Major Benefits from the Deal: There are many benefits from this deal few of which includes
- On manufacturing of coaches in India surely, we will get a reduction in cost and other charges included.
- There will be a great transfer of technology to India, through which Indian companies can make the Coaches on own in future.
- They will be a generation of employment in India which will help the local unemployed peoples.
- When local people will work in the Japanese plants operated in India the revenue of country will increase.
- There will increase in such projects in the future on the success of this project.
- Japanese companies will tend to invest more in Indian land which will ultimately benefit us.
For all this work JICA will provide the help in the form of loans, grants,and various other technical assistance if required so that India can strengthen its capabilities. This agreement will also help in enhancing the future relations between both India and Japan.