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A consortium consisting of Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga), Ircon International Limited ("IRCON", Head Office: New Delhi, National Capital Territory of Delhi, India, Chairman & Managing Director: S. K. Chaudhary), a company under the Ministry of Railways, Government of India, and Tata Projects Limited ("TPL", Head Office: Secunderabad, Telangana, India, Managing Director: Vinayak Deshpande), an infrastructure development company in the Tata Group, has been awarded orders totaling approximately ¥49 billion by the Dedicated Freight Corridor Corporation of India Ltd., a corporation under the control of the Indian Ministry of Railways. The orders are for civil and track works in the State of Maharashtra from the Jawaharlal Nehru Port Trust (JNPT) in Mumbai to Vaitarana spanning 102 kilometers ("Project"), as part of a plan to build a dedicated freight line between Delhi and Mumbai through India's largest industrial area. Mitsui's various projects in the Western Dedicated Freight Corridor (DFC), including previous contracts for civil and track works and signaling and telecommunications works, now total ¥164 billion.
Mitsui will be the consortium leader for the Project. IRCON and TPL will jointly carry out civil engineering work and lay tracks, using high-quality Japanese-made rails.
The purpose of this Project is to meet increasing rail freight demand resulting from India's rapid economic growth in recent years. The new tracks will form part of the Western DFC between Delhi and Mumbai. The DFC project will eventually link the four cities of Delhi, Mumbai, Chennai, and Kolkata at the corners of India's Golden Quadrilateral. The Japanese government has provided yen loans for the Western DFC project under the Special Terms for Economic Partnership (STEP).
The Western DFC will be the backbone of the Delhi Mumbai Industrial Corridor (DMIC) scheme, a joint initiative by the Japanese and Indian governments. In addition to reducing the load that is on the existing tracks, it will reduce the time required to move freight from Delhi to Mumbai from over three days at present to less than one day. This major improvement in logistical efficiency is expected to make a significant contribution to industrial development in India.
The consortium previously received two consecutive orders for civil and track works covering two sections totaling 320 kilometers from Vaitarana, Maharashtra to Sachin, Gujarat. The combined length of these previous civil and track works and the aforementioned Project contracts totals 422 kilometers from JNPT (Mumbai) to Vadodara, Gujarat, and the route runs parallel to the rapid train project between Mumbai and Ahmedabad.
Mitsui will continue to work on this Project, which symbolizes cooperation between the governments of Japan and India. We will also continue to play an active role in urban transit and high-speed rail projects to meet anticipated growth in the demand for core infrastructure and to contribute to further economic development in India by introducing Japan's advanced railroad technology.
|JNPT - Vaitarana: 102 km (PKG11 in the map below)
|Total of approximately ¥49 billion
|208 weeks (approximately 4 years) from the start of work
|Dedicated freight railroad
|Content of Project
|Civil engineering and track-laying work
Approximately 102 kilometers from JNPT (Mumbai) to Vaitarana in Maharashtra
|Name of Company
|Ircon International Limited
|Indian central government: 99.729%
IRFC (financing arm of the Indian Ministry of Railways): 0.247%
Bank of India (central bank): 0.024%
|Infrastructure development, construction
|Name of Company
|Tata Projects Limited
|Closely held by Tata Group companies
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.