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Monday, July 5, 1999

Japan forms consortium for Indian infrastructure sector 

PTI  
Tokyo, July 4: Japan is in the process of forming a consortium to promote private initiatives in the development of major Indian infrastructure sectors, but expects New Delhi to overcome certain procedural wrangles for speedy implementation of the projects.

India has been adhering very strongly to the international competitive bidding (ICB) method for awarding the projects in order to introduce transparency and rule out corruption.

``These objectives are indeed laudatory. However, we should remember that the end should justify the means. In some cases, ICB may be counter-productive because it is a very time consuming process and sometimes one ends up with notional equity at the expense technical superiority,'' said Keishi Fujii, vice-chairman of the Standing Committee of Japan-India Business Cooperation Committee (JIBCC).

He said India needed better infrastructure and New Delhi should go for it with a sense of urgency. The Japanese ministry of international trade and industry (MITI) and JIBCC wouldlike to work together with Indian private sector, both corporate and financial, he said.

Fujii suggested that the Indian government urgently consider the memorandum of understanding (MoU) and `showcase' award methods to speed up the projects. ``As long as the Indian government ensures that the award of the contract is channeled through the Japanese government, it need not worry about corruption charges. India can enjoy a competitive pricing with a possible financial support from our government,'' he assured.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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