Japan to help India construct new state capital

NEW DELHI - Sumitomo Corp. and other Japanese corporations, with support from the government of Japan, will help build infrastructure for the new capital city that the Indian state of Andhra Pradesh aims to open by 2024.

Andhra Pradesh split in two last June, with the northern part becoming the new state of Telangana. Because its capital city, Hyderabad, is located in Telangana, Andhra Pradesh intends to set up a new capital in the Vijayawada region in the central part of the state.

Plans call constructing a water and sewer system, a waste-processing facility, a biomass power plant, a state government building, and an urban transit system for roughly 300 billion yen (S$3.31 billion). Japan will handle preliminary studies.

Trading house Sumitomo will take part in fund procurement and construction. It is already in discussions with organisations including the Japan International Cooperation Agency and the Japan Bank for International Cooperation. Japan's New Energy and Industrial Technology Development Organisation is expected to provide cutting-edge technologies in the energy and environmental fields. An industrial park for Japanese companies may be built in the state.

Officials from Japan's Ministry of Economy, Trade and Industry, the state government of Andhra Pradesh, and the Singaporean government are expected to sign an agreement in Hyderabad on Monday.

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