By KUNA,
Tokyo : Japan and India agreed Tuesday to establish a JPY 15 billion (USD 150 million) fund to improve India’s infrastructure, in an effort to encourage more Japanese firms to invest there.
The agreement was reached here between Japanese Economy, Trade and Industry Minister Toshihiro Nikai and his Indian counterpart Kamal Nath. The fund will be used for projects to create a roughly 1,500 km industrial corridor linking the capital city of New Delhi and the port city of Mumbai, according to the Ministry of Economy, Trade and Industry.
The Indian government is planning to establish a freight rail connection between the two cities by 2015.
The plan is to be formally agreed between Japanese Prime Minister Taro Aso and Indian Premier Manmohan Singh during their summit meeting on Wednesday.