Jaitley invites pension funds, other Japanese investors

Ban on large diesel vehicles a transient phase, says FM

Keen on investments from Japan to boost economic growth, Finance Minister Arun Jaitley on Monday met key ministers in the Japanese administration and wooed pension funds to partner in India’s infrastructure development.

Jaitley, on the second day of his six- day visit to Japan, met Japans Deputy Prime Minister and Finance Minister Taro Aso to discuss investment opportunities India presents to the Japanese investors. He held wide- ranging talks with Aso to boost bilateral economic ties, official sources said.

Jaitley also met Minister of Economy, Trade and Industry Motoo Hayashi on Japan partnership in Indias growth story.

He had separate meetings with Minister of Health, Labour and Welfare Yasuhisa Shiozaki and with Minister of Land, Infrastructure, Transport and Tourism Keiichi Ishii. Ishii assured to look into Japanese investment in transport and infrastructure sector in India, sources said.

India is seeking investors for its newly announced infrastructure fund NIIF ( National Investment and Infrastructure Fund) that is being set up with acorpus of ? 40,000 crore to finance infrastructure projects, including stalled ones. NIIF will be partly funded by private investors.

The government and public sector entities will hold 49 per cent, with the rest is being offered to multilateral development banks, sovereign wealth funds, pension funds and other organisations.

Official sources said the bilateral issues of trade and investment were discussed during Jaitleys meetings here.

Jaitley also met Natsuo Yamaguchi, leader of Komeito Party of Japan.

Earlier in the day, Jaitley played down the ban on registration of new large dieselpowered vehicles in Delhi, saying it is a “ transient” phase and India was a market large enough not to adversely affect auto companies.

He is scheduled to meet Suzuki Motor Chairman Osamu Suzuki on Tuesday. " I think the Indian auto sector is extremely comfortably placed. This is all transient phase which happens and I dont think that with the kind of large market that Suzuki has, it is in any way likely to be adversely affected," the minister said.

The minister said his trip was aimed at taking the India growth story forward with investors so as to make them invest in a host of sectors, including infrastructure.

"We already have over a thousand Japanese companies which have invested in India. (Japanese) Prime Minister (Shinzo) Abe seeks to double it and therefore, I would be meeting individually as well as collectively a large number of investors." The finance minister on Monday denounced any attack on Reserve Bank Governor Raghuram Rajan and said the debate should be about the issues and policies, and not about the personalities. Jaitley, however, declined to comment on whether Rajans term would be extended after his current three- year tenure ends this September.

Rajan has been facing a continuous attack by BJP MP Subramanian Swamy and by some other sections, who have demanded termination of his service or at least denial of any extension while alleging the RBI Governor has failed to lower interest rates and boost the economy.

"I do not approve of any of these comments being made by anyone as far as the personality is concerned, because the RBI and its Governor is an important institution in Indian economy," Jaitley told PTI in an interview here.

Jaitley said RBI is an important institution and one can agree or disagree with its judgement. " A debate on issues" is fine but it should not be " converted into debate on persons," he added.

Business Standard New Delhi, 31st May 2016

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