Power and Coal Minister Piyush Goyal said most bankers expressed deep satisfaction at the growing importance that Japan places on Indo-Japanese Strategic Partnership and wish to participate in this engagement. (PTI file photo)
Power and Coal Minister Piyush Goyal today said Japanese financial institutions have evinced keen interest in investing large amount of capital in various sectors including energy space in India.
"I had a very good interaction with six financial institutions and banks this afternoon... The high level of integrity and good governance that has been the focus of Prime Minister Narendra Modi has excited investors who wished to commit large amount of capital particularly for the energy sector," Mr Goyal said in Tokyo.
He was addressing reporters at the India-Japan Strategic Energy Dilogue where CII is leading a high powered business delegation.
Some of the financial institutions with whom the minister had meetings are SMBC (Sumitomo Mitsui Banking Corporation), Mizuho Bank, BTMU (Bank of Tokyo Mitsubhishi UFJ), JICA, NEXI(Nippon Export & Insurance Investment), JBIC.
"Most bankers expressed deep satisfaction at the growing importance that Japan places on Indo-Japanese Strategic Partnership and wish to participate in this engagement," the minister said.
The minister also had a meeting with top executives of Japanese companies like JPower and Hitachi.
"Almost unanimously all... have expressed great deal of satisfaction at the progress made by the new government in building up investors sentiments, allaying the fear of several investors developed in the last few years, particularly after the slowdown of the economy which was compounded with the series of litigations which tampered the investment moods," he said.
However, he added that a few issues were raised by some bankers which were related to regulatory concerns both in the financial services and power sector and about health of the state distribution companies over the last few years.
"They have expressed satisfaction that the government is taking proactive measures to resolve these problems particularly through UDAY programme," he said.
He added that they have also expressed satisfaction that Indian discoms and the government have never defaulted "due to which they feel great deal of comfort with Indian government."
Mr Goyal said that Softbank has expressed its willingness to invest more in India. "Softbank is in a mood to invest more, so it is a win win for all of us," he said.
"I can see traction in Japanese companies (both investors and lenders) to come and invest in India," he added.
When asked about the financial commitment made by the Japanese firms, he said, "My job is that of a facilitator and understand how they do business in India... they (Japanese firms) have no limitations in terms of the ability to investment in India."
The figures could range into several billion dollars, the minister added.
According to Rajeev Kannan of SMBC, the Japanese companies are keen to come to India. "We as a banker try to support these companies to get into Indian market", he said adding that "they want to see that there is a clear cut government policy."
The bank which has one branch in New Delhi is looking to expand in India in cities like Mumbai.
Tatsufumi Sakai of Mizuho said that Japanese companies are showing excitement to invest in India but they need strong support from Indian Government to bring clarity on policy issues and hedging currency risk.
IL&FS Energy's Rajsekhar Budhavarapu who is also part of CII delegation, said that the company is developing a 500 MW energy storage park with Rajasthan Government. "The work on first phase is underway," he said.