Chennai Metro gets Make in India push from Japan
The government has brought Japanese funding agency, JICA, on board to ensure that three-fourth of Metro rail coaches to be supplied by Japanese companies are manufactured in India. The Japanese firms can either set up their own plants here to produce the coaches or collaborate with Indian firms. This agreement has been signed with JICA for funding of the second phase of the Chennai Metro project. The Japan International Cooperation Agency (JICA) will extend $2.89 billion (Rs 20,196 crore) for the project. The agreement is being seen as a positive signal for proposing a similar arrangement for future Metro and other rail projects to push the 'Make in India' initiative. After several rounds of meeting between the urban affairs secretary and Japanese ambassador, both sides agreed to push the manufacturing of rolling stock in India for the Chennai Metro project. As per the agreement, the Indian side will share the recently awarded rates of rolling stock with the Japanese side, which would be shared with their rolling stock manufacturers.