TOKYO: Japanese energy companies and financial institutions are looking to invest heavily in India, Power Minister Piyush Goyal said in Tokyo on Wednesday.
Goyal said companies and lenders in Japan have evinced interest in setting up big solar projects and equipment manufacturing lines in India, which is expected to quadruple electricity generation in the next 15 years, while their country does not offer a good growth proposition. He said the future ultra mega power projects (UMPPs) for which the government will invite bids also offer investment potential to foreign firms.
The minister met representatives of companies including SoftBank Corp, Toshiba Corp, Spower Corp, Fuji Electric and banks such as Bank of Tokyo, Sumitomo Mitsui Banking Corp and Mizuho Bank during the first two days of his government-cum-industry delegation to Tokyo.
India Inc, represented by industry lobby CII, is part of the delegation.
Goyal met manufacturers of solar wafers and cells on Wednesday to persuade them to set up manufacturing plants in India. On Thursday, he is scheduled to meet various financiers including JICA, Nippon Export & Insurance Investment and JBIC that are looking to tap into opportunities in India's energy sector.
The Japanese firms have realised that India offers a huge potential to world. The Japanese pension funds and insurance companies have a negative interest scenario, Goyal said.
India's energy production has an investment potential of $250 billion by 2019 and about $1 trillion by 2030, he said. In the last 25 years, if one assesses rupee, there is a CAGR depreciation of 3.5%, making rupee one of the most stable currencies in the world. This coupled with government commitment and Indian citizens' aspirations offers a good potential, the minister said.
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