The first contract for a smart community project under the Delhi-Mumbai Industrial Corridor (DMIC) was signed on March 22, 2012 (at 20:00 Japan time). DMIC is a project conducted by the Indian government in cooperation with the Japanese government. The contracted project is the first infrastructure development project to be implemented through cooperation between the government and the private sector in both countries under DMIC. Its early realization was called for in the joint Japanese and Indian Prime Ministers' statement issued in December last year.

With respect to DMIC, former Prime Minister Hatoyama, during his visit to India in December 2009, agreed with Indian Prime Minister Singh to promote a Smart Community initiative that aims to create an eco-friendly society. In accordance with this agreement, since 2010 the Ministry of Economy, Trade and Industry (METI) has been assisting Japanese consortiums in conducting feasibility studies in six regions locations regarding wide-ranging sectors, including energy, water, transport and recycling, with a view to launching smart community projects.

For the contracted project, Hitachi's consortium concluded a memorandum of understanding on cooperation on smart communities with the Gujarat State Government and Delhi Mumbai Industrial Corridor Development Corporation in April 2010. They have been conducting a feasibility study with the support of METI. Last December's joint statement between Prime Minister Noda and Prime Minister Singh confirmed that both governments would support this project as one of the initiatives whose early realization should be pursued. The project is the first infrastructure development project to be implemented through cooperation between the government and the private sector in both countries under DMIC.

The present contract constitutes the basic agreement between Dahej SEZ Ltd., a Gujarat State Government-affiliated company, and a Japanese consortium involving Hitachi and Itochu on water supply in Asia's largest seawater desalination project, which is planned in Dahej, Gujarat by the consortium. The signing ceremony was held with the attendance of officials from both governments.

Attendees

• From Japan: Akitaka Saiki, Ambassador of Japan to India; Kenji Goto, Deputy Director-General for International Regional Policy, METI; Kiyoshi Sawaki, Director, Information Economy Division
• From India: Narendra Modi, Chief Minister, Gujarat State; Maheshwar Sahu, Principal Secretary, Industries State Government of Gujarat; Amitabh Kant, Managing Director & CEO, Delhi Mumbai Industrial Corridor Development Corporation

• Seawater Desalination Project in Dahej, Gujarat (Smart Community Project) (PDF:118KB)
• Smart Community Development under India's DMIC (PDF:231KB)

Both sides will continue negotiations to decide on the detailed project conditions. METI will cooperate with related institutions to develop necessary financial assistance measures.

METI will also promote efforts to realize other smart community projects in DMIC. In this context, coordination efforts will be accelerated for the commencement of a photovoltaic power generation demonstration project in Neemrana, Rajasthan, which is being planned by the New Energy and Industrial Technology Development Organization (NEDO).

• Delhi-Mumbai Industrial Corridor (DMIC) (PDF:283KB)

March 23, 2012

Information Economy Division, Commerce and Information Policy Bureau