The Japanese Steel companies are taking the front seat in the Indian bullet train project. The project is one of the most important components of PM’s ‘Make in India’ policy which he has been advocating vehemently.

About 70% of the raw materials are said to come from the Japanese companies, Reuters said quoting five sources.

However, the Japanese officials said that the countries are still trying to work out a plan that works “for the supply of key components, and would unveil a plan for procurements around July.”

What was the initial agreement?

The agreement had two clauses, ‘Make in India’ and ‘Transfer of Technology’. The idea was to set up manufacturing centres in the country and generate jobs while getting acquainted with the Japanese Technology.

“The Japanese have reservations on certain issues because they have a concern that there is a difference in the culture and systems of Japan from the culture and systems in India,” Achal Khare, the managing director of National High Speed Rail Corp Ltd (NHSRCL) was quoted as saying. The company is going to execute the bullet train project.

The Japanese have also raised doubts about the efficiency of the Indian companies, Reuters said.

Tomoyuki Nakano, Director for International Engineering Affairs in the Railway Bureau at Japan’s Transport Ministry raised issues over India’s experience in dealing with ‘high speed railway systems’.

Indian officials seemed to agree that in the bullet train project, the Japanese will be calling the shots. “At this stage to expect Indian companies to have a bigger share in manufacturing appears to be a little difficult,” said a senior official with NITI Aayog to Reuters.

“It’s like a chicken and egg situation on technology. The Japanese want an economy of scale and business but the Indian view is that India is a big market that once this market is explored the business will automatically be generated,” Khare from NHSRCL said.