The Hindu Business Line : Japan keen to offer ODA for setting up broadband network

Mr Rajendra Mishra, Vice-President, Flextronics, with Mr Kozo Takahara, Vice Minister for International Affairs, Ministry of Internal Affairs and Communications, Japan, at a press conference in Bangalore on Saturday. — G.R.N. Somashekar

Bangalore , March 19

JAPAN, which is leading the broadband deployment initiative all over Asia, is keen to assist India in setting up the network.

Mr Kozo Takahara, Vice Minister, Ministry of Internal Affairs and Communications, said his Government was keen to provide overseas development assistance (ODA) for setting up the broadband network in India. However, he declined to quantify. "Japan is keen to enhance its software sourcing and is looking for collaboration with India in the ICT sector," Mr Takahara said.

He is currently leading a delegation of some 20 representatives of various Japanese corporates to India visiting various cities including Delhi, Bangalore and Chennai.

The delegation visited the facility of Flextronics Software Systems, Software Technology Parks of India and the Indian Institute of Information Technology on Saturday. It will also visit the campuses of software giants Infosys and Wipro on Sunday.

Mr Takahara's visit to India follows the recent visit to Japan by the Union Minister for IT and Telecommunications, Mr Dayanidhi Maran.

Withholding tax to be cut: Replying to a query, Mr Takahara said Japan is keen on reducing the withholding tax, a major impediment for technology business between both the nations. "Finance ministries of both nations are working on modifying the withholding tax," he added.

India has been demanding that Japan must waive the 20 per cent withholding tax imposed on Indian companies with subsidiaries in Japan. The Japanese market accounts for about five per cent of India's total IT exports.

Mr Motai Akio, President of the R and D Promotion Committee of Yokosuka Telecom Research Park, said they have set up a forum to explore business opportunities with India in the field of wireless technology.

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