Japanese civil engineer Nippon Koei to embark on India’s infrastructure projects

10, Jan. 2020

Photo by Sujith Devanagari on Unsplash
Photo by Sujith Devanagari on Unsplash

NEW DELHI, NNA - Nippon Koei Co. has won a seven-billion-yen ($63.9 million) contract to build transportation infrastructure in India in a move to relieve traffic congestion caused by the growing population, the Japanese civic engineering firm said on Wednesday.

The contract includes three projects in southern India’s Chennai region. For one to build parts of a 107.5-kilometer railway, Nippon Koei will provide consulting services, including a railway system design and construction management through a joint venture.

The venture, planning to start metro services in June 2027, includes Nippon Koei’s Indian unit Nippon Koei India Pvt. Ltd., Aarvee Associates Architects Engineers & Consultants Pvt. Ltd. and Balaji Railroad Systems Pvt. Ltd. The contract for the Nippon Koei group is valued at about 5.4 billion yen.

Japanese government-backed yen loans will finance the project. In December 2018, Japan International Cooperation Agency reached an agreement with the Indian government to provide loans of up to about 75.5 billion yen with a 0.2- percent interest rate to be redeemed for 40 years.

The agreement limits project participants to Japan and India, potentially allowing Japanese traffic management technologies and equipment such as a traffic signal and a metro vehicle to be used for the project. “We’re willing to procure Japanese technologies (for the project),” a spokeswoman at Nippon Koei told NNA.

For the second project, Nippon Koei will undertake the construction of part of a 133-km beltway, with an automatic fare collection and traffic control systems. The task, participated in by a five-way joint venture, is planned to be completed in March 2023. The Nippon Koei group will be awarded about 600 million yen.

Another project in a central area of Chennai, the capital of Tamil Nadu state, will utilize intelligent transport systems to relieve traffic congestion for efficient bus services. The plan is also joined by a four-way joint venture also including the Koei group which will be awarded about 1 billion yen. The project is scheduled to be completed in March 2028.

Pankaj Kumar Bansal, president of Chennai Metro Rail Ltd. (L), and Ken Nishino, Nippon Koei’s Acting Director General of International Consulting Operations.
Pankaj Kumar Bansal, president of Chennai Metro Rail Ltd. (L), and Ken Nishino, Nippon Koei’s Acting Director General of International Consulting Operations.