JBIC is a policy-based financial institution of Japan, and conducts lending, investment and guarantee operations while complementing private sector financial institutions.
Equal opportunities for women need to be supported by a number of policy measures, including creation of jobs, better infrastructure, safety and security and access to childcare facilities. The aggressive push for privatisation without an integrated policy for women’s employment is self-defeating.
The major thrust to privatisation arrived in the era of neoliberalism in the 1980s, and soon a policy argument emerged that saw privatisation a necessary step to strengthen the economy. It was perhaps a political tool to entrench capital into various economies and make their return to government regulation difficult.
The dictum that ‘government should not be in business’ is fine, but while giving a push to privatisation the government should also fulfill its primary responsibility toward citizens: ensure its citizens are provided an environment that enables them to achieve their full potential. In his enlightening piece on the phenomenon, Partha Mukhopadhyay tells us why it is necessary.
There is widespread disenchantment with and disdain for government schools not only among affluent or middle-class people but also among poorer people, who feel an English-medium education would help their children’s career prospects. But English-medium schools fail to provide quality education.
The government is like the millstone that hurts PSUs. Its demand for dividends is unrelenting and the pressure on PSUs to go beyond their primary task to serve the fanciful projects of the government increases by the day. Diversification and consolidation based on their business logic are denied. Interference has reached a truly dysfunctional level that threatens to undermine the organisations of even worthy PSUs like NTPC and ISRO, says Sebastian Morris.
Updated: 28 Mar 2022 6:25 pm
The Japan Bank for International Cooperation (JBIC) has disbursed $1.5 billion to SBI to finance Maruti Suzuki's supply and value chain in the country, and it is ready to facilitate $500 million more, a key official of the Japanese government's funding agency said.
JBIC is a policy-based financial institution of Japan, and conducts lending, investment and guarantee operations while complementing private sector financial institutions.
Since the first wave of the pandemic, JBIC has committed $8 billion investment in India of which $5 billion is for acquisition financing along with commercial banks, Toshihiko Kurihara, Chief Representative, Representative Office in New Delhi, JBIC said in an interaction.
"We have $2 billion financial (commitment) to State Bank of India (SBI) towards the financing of Maruti Suzuki's supply and value chain. We already disbursed $1 billion in November-December 2020 and an additional $500 million is done…we have an additional limitation of $500 million. We are prepared to finance the additional 500 million," Kurihara said.
As its mandate, he said JBIC can only finance those projects and investments where Japanese companies are involved.
"JBIC is trying to fund as much Japan-related projects in India. That's the first (requirement) because, without the Japanese involvement, we are not allowed to finance any projects. We helped acquisition financing for Nippon Steel to acquire Essar Steel," he added.
In December 2019, Global steel giant ArcelorMittal completed the acquisition of Essar Steel and formed a joint venture with Nippon Steel to own and operate debt-ridden Essar Steel for Rs 42,000 crore.
The joint venture with Nippon Steel Corporation (Nippon Steel) is called ArcelorMittal Nippon Steel India Limited (AM/NS India).
ArcelorMittal holds 60 per cent of AM/NS India, with Nippon Steel holding the balance 40 per cent.
In January this year, the Gujarat government said AM/NS India, which owns a steel mill at Hazira in Surat, will invest Rs 1,66,000 crore in six different projects in the state.
As per the agreement, the steel giant will invest Rs 4,200 crore for the expansion and modernization of their captive jetty in Hazira and Rs 45,000 crore to increase the Hazira plant's steel production capacity from the current 8.6 MMTPA to 18 MMTPA.
"ArcelorMittal Nippon Steel has announced the additional expansion of the Hazira steel plant. May be additional USD 5 billion (investment may happen)…JBIC is one of the candidates among the financiers. We go along with Japanese partners to achieve such targets. For any investment, 40 per cent of it has to be by Nippon Steel and 60 per cent by ArcelorMittal," he said speaking on the sidelines of the New Energy and Industrial Technology Development Organisation (NEDO) Activity Report launch last week here.
He said JBIC is fully committed to funding Japanese companies' investment in India.
"We do not have a quantitative target of investment, but a qualitative target is there. India is a very important country (for us)," he added.
JBIC is mandated to invest in four key areas: development and securement of resources that are important for Japan; maintaining and improving the international competitiveness of Japanese industries; business engaged in preserving the global environment and; preventing disruptions to international financial order or taking appropriate measures with respect to damages caused by such disruption.
Established on April 1, 2012, the agency aims to contribute to the sound development of Japan and the international economy and society by conducting financial operation.
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