"The World and Japan" Database (Project Leader: TANAKA Akihiko)
Database of Japanese Politics and International Relations
National Graduate Institute for Policy Studies (GRIPS); Institute for Advanced Studies on Asia (IASA), The University of Tokyo

[Title] Joint Statement between the Ministry of Economy, Trade and Industry of Japan and the Planning Commission of India on the Occasion of the Fourth Meeting of the Japan-India Energy Dialogue

[Place] New Delhi
[Date] April 30, 2010
[Source] Ministry of External Affairs, India
[Full text]

H.E. Mr. Masayuki Naoshima, Minister of Economy, Trade and Industry of Japan, and H.E. Mr. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission of India, met in New Delhi on the 30th of April, 2010 for the fourth ministerial-level meeting of the Energy Dialogue between Japan and India.

The two Ministers welcomed the progress made in Working Group discussions by Japanese and Indian officials on energy efficiency, renewable energy, coal and electricity and power generation and the Japan-India Energy Dialogue steering committee meeting.

The two Ministers noted with satisfaction India's formal joining of the International Partnership for Energy Efficiency Cooperation (IPEEC) in September 2009, and confirmed the importance of bilateral and multilateral cooperation in the fields of energy efficiency.

Recognizing that energy policy can also contribute to addressing climate change, the two Ministers welcomed the Copenhagen Accord. The two Ministers reaffirmed their determination to collaborate closely in the negotiations under the United Nations Framework Convention on Climate Change towards an Agreed Outcome to be adopted at the 16th session of the Conference of the Parties in Mexico in 2010.

In the meeting, the two Ministers reached a conclusion on the following cooperation, outlined below from (1) to (4), in order to build a cooperative relationship between the two countries in the energy sector through concrete and pragmatic projects.

(1) Cooperation in the energy conservation sector

(i) As a follow up to the Joint Statement issued at the Third Meeting of the Japan-India Energy Dialogue, the two Ministers reviewed the progress made in discussions on the Regional Energy Efficiency Centre (REEC) Project, reaffirmed the significance of this project in promoting energy efficiency on a practical level in India, and decided to proceed through the signing of a Memorandum of Understanding (MOU) by India's Bureau of Energy Efficiency (BEE), National Productivity Council (NPC) and Japan's New Energy and Industrial Technology Development Organization (NEDO) for its establishment in Chennai. Capacity building, such as training of trainers and dispatch of experts, will take place by the end of 2010, following the completion of ongoing construction work and the installation of training equipment at the Centre. The Japanese side expressed its willingness to positively consider possible cooperation in other similar initiatives upon receipt of specific proposals from the Indian side.

(ii) The two Ministers welcomed the progress in NEDO's ongoing commercial-scale model projects for a coke dry-quenching system, diesel generator fuel-switching, and sinter cooler waste heat recovery. Annual CO2 reductions of approximately 255,000 tons can be expected through implementing these projects. It is hoped that further large scale deployment of these technologies will make a large contribution to the fight against global warming. India will work towards their deployment by utilising the Energy Efficiency Services Ltd. (EESL) and other measures.

(iii) The two Ministers welcomed the progress of the feasibility study by NEDO regarding the potential for applying heat pump and heat storage technologies to urban buildings. The two sides recognized that a project to demonstrate such technologies would be useful and could lead to large reductions in energy use in the urban area if widely deployed. It is hoped that these energy-saving technologies together with the Energy Service Companies (ESCO) business model for promoting energy conservation will be mutually reinforcing.

(iv) The two Ministers welcomed the Asia ESCO Conference held by NEDO and BEE in January 2010 in New Delhi. They welcomed that the Conference would help to promote the dissemination of ESCO within the Asian region and further encourage investment of Japanese ESCOs in the Indian market.

(v) The two Ministers welcomed the implementation of NEDO's energy conservation diagnosis programme in the cement and steel sectors, the flagship project of the Asia-Pacific Partnership (APP).

(vi) The Indian side expressed its appreciation for the assistance from Japan (Energy Conservation Center, Japan) with regard to the following ongoing activities as part of energy conservation capacity-building programmes: a) the acceptance of trainees from India's energy conservation agencies designated by BEE or local governments; b) the provision of training programmes on ESCO for officials involved in India's energy conservation policies regarding ESCO and concerned enterprises; and c) the dispatch of experts for small-group activities on energy conservation and the introduction of an energy management manual at India's small- and medium-sized enterprises. The Indian side noted that Japan's cooperation in these areas has been reflected in the formulation of India's National Mission for Enhanced Energy Efficiency. The Japanese side expressed its commitment to the cooperation in these areas through the continued provision of training programmes and dispatch of experts.

(vii) The two Ministers welcomed the renewal of the MOU on cooperation in energy conservation, signed by ECCJ and India's Petroleum Conservation Research Association (PCRA). Based on the MOU, energy conservation management technology in the industrial sector has been transferred through the dispatch of experts and provision of training programmes, and the programme for preparing an energy diagnosis manual for the textiles industry has been launched to improve diagnostic capability. In order to promote this programme, the Indian side agreed to establish an implementation framework by PCRA and concerned industrial associations, while the Japanese side confirmed its continued cooperation through the dispatch of experts and the provision of training programmes.

(viii) The two Ministers expressed their satisfaction with the fact that the technical training programme provided by the Japan International Cooperation Agency (JICA) to foster Indian energy managers has been extremely useful and hoped that they will continue to play an important role.

(ix) The Indian side welcomed the participation of the Japan External Trade Organization (JETRO) and the Japanese Business Alliance for Smart Energy Worldwide in India's Energy Tech Expo in December 2009 and the International Engineering & Technology Fair (IETF) in February 2010, with a view to facilitating commercial-based technology transfers between Japan and India and providing further opportunities for business matching. Besides, the Indian side welcomed the exhibit of NEDO at the Delhi International Renewable Energy Conference (DIREC) to be hosted by India.

(x) The two Ministers also welcomed the progress of the Japanese ODA Loan Project "Micro, Small and Medium Enterprises Energy Saving Project", extended by JICA through Small Industries Development Bank of India (SIDBI), with synergetic JICA technical training programme focusing on energy efficiency financing instruments in order to promote energy conservation activities all over India.

(2) Cooperation in the electricity and coal sectors

(i) The two Ministers welcomed the formulation and completion of the action plan on high-efficiency and low-emission coal technologies by Japan and India, in the context of the Major Economies Forum on Energy and Climate Change (MEF), which was finalized in December 2009.

(ii) Several efforts on technology transfer aiming at improving the efficiency of India's domestic coal use and reducing environmental impact are making progress. With regard to the commercial-based model project for high-efficiency coal preparation to reduce the ash content of coal in India, the two Ministers welcomed the signing of a memorandum of understanding by NEDO and the Ministry of Coal of India as well as the progress in the construction of necessary facilities. The two sides decided to continue discussions on possible cooperation in the area of coking coal washing.

(iii) The Japanese side conveyed its decision to conduct a pre-primary study for improvement of efficiency and environment of coal-fired power stations in India by dispatching experts and providing advice on modifications. The two Ministers welcomed the signing of a memorandum of understanding of the study on improving the thermal efficiency of coal-fired thermal power plants in India and reducing their environmental impact by the Japan Coal Energy Center (JCOAL) and India's Central Electricity Authority (CEA).

(iv) The two Ministers welcomed the continuation of the training programme regarding the transfer of Clean Coal Technology (CCT) since fiscal year 2001. They also welcomed the fact that a total of 92 Indian trainees had been accepted by Japan by fiscal year 2009.

(v) In the area of electricity generation, the two Ministers welcomed the progress in the training programme on thermal power technology by JICA and the implementation of the study on enhancing the efficiency of operating thermal power plants in India's NTPC Ltd.

(vi) The two Ministers welcomed the first India-Japan Joint Venture manufacturing plant for supercritical pressure boilers and turbine generators, which will be operational shortly. They expressed their hope that the JV, set up with financial support from the Japan Bank for International Cooperation (JBIC), will make a significant contribution to meeting India's fast-growing electricity demand and improving India's power generation technologies.

(vii) The Indian side welcomed Japan's Technical Mission to India on coal mining safety in February this year. The areas of cooperation proposed by India are: (a) development of integrated underground communications system (b) instrumentation for monitoring of mine gases and fires (c) detection of partings between adjoining water-logged unapproachable workings and (d) rescue equipment and operations.

(viii) The Indian side welcomed the proposal of the Japanese side to hold the Clean Coal Seminar on Japan-India cooperation in areas such as low-carbon coal-fired power plants in India this year.

(3) Cooperation in the renewable energy sector

(i) The two Ministers welcomed the progress of the joint research and development project, proposed by NEDO, regarding technology for evaluating the operating life of solar cells, as one of the activities of the APP's Renewable Energy and Distributed Generation Task Force. The project involves installing multiple solar panels of the same kind in Japan and India and comparing their life evaluations under actual load conditions. The necessary facilities have been installed in India and demonstrations have started.

(ii) The two Ministers welcomed the joint project by NEDO and the Indian Institute of Technology (Hyderabad) to study a stable electricity supply system for industrial parks through the introduction of Micro Grid and Smart Grid technologies.

(iii) The two Ministers noted that Smart Communities and Eco-friendly Townships along the Delhi-Mumbai Industrial Corridor, which aim to develop next-generation energy infrastructure utilizing technologies such as solar energy, smart grid, smart urban transport, water management, recycling, etc. and IT technology from Japan, are important from the energy perspective. The two Ministers welcomed the progress made under this initiative. The two Ministers noted that a microgrid using mega-scale solar energy could be a good area for energy cooperation as part of this initiative, and NEDO will conduct a feasibility study in this area under METI's instructions.

(iv) The Indian side welcomed the planned implementation of a training programme on new energy for Indian officials involved in policymaking by Institute of Energy Economics, Japan (IEEJ).

(4) Cooperation in the oil and natural gas sectors

(i) Japan and India welcomed the steady implementation of the joint statement signed by METI of Japan and the Ministry of Petroleum and Natural Gas (MOPNG) of India as well as the six MOUs concluded between the two countries' implementing agencies based on the joint statement.

(ii) In accordance with their MOU, the Japan Oil, Gas and Metals National Corporation (JOGMEC) and India's Oil and Natural Gas Corporation (ONGC) Videsh have made steady progress in their cooperation, including holding of the second meeting on exploration cooperation in India and third countries.

(iii) In accordance with their MOU, JOGMEC and the Directorate General of Hydrocarbons (DGH) of India have made steady progress in their cooperation, including holding of the second meeting on methane hydrate in Tokyo.

(iv) In accordance with the MOU concluded between Japan's METI and India's MOPNG, the two ministries have made steady progress in their cooperation, including holding of the seminar on oil stockpiling technology in New Delhi by the two countries' stockpiling implementing agencies --- JOGMEC and India's Oil Industry Development Board (OIDB)/Indian Strategic Petroleum Reserves Ltd. (ISPRL).

(v) The two Ministers highly evaluated the results of the joint research project by the Institute of Energy Economics, Japan (IEEJ) and the Petroleum Planning and Analysis Cell (PPAC) of MOPNG on Recent Volatility in Oil Prices and its Impact on the Asian Economy. They also hoped for the further development of cooperative activities under the MOU including joint research and its contribution to the enhanced stability of the energy market.

(vi) The two Ministers welcomed the renewal of the MOU signed by the Petroleum Conservation Research Association of India and ECCJ as well as the progress in cooperation based on the MOU, such as the dispatch of experts.

The two Ministers recognized the need to facilitate cooperation between the industries of the two countries' in order to expand bilateral energy cooperation on a commercial basis. In this context, they took note of the successful holding of the Third Japan-India Energy Forum in India in February 2010 by NEDO and The Energy and Resources Institute (TERI) of India.

Based on the Joint Statement by Prime Minister Dr. Yukio Hatoyama and Prime Minister Dr. Manmohan Singh, released on 29 December 2009, the two Ministers reiterated the important role of nuclear energy in meeting the growing energy demands in both countries in a safe, sustainable and non-polluting manner. The two Ministers decided to establish a Nuclear Energy Working Group under the Energy Dialogue to exchange views and information on their respective nuclear energy policies from the energy, economic and industrial perspectives. They welcomed that the first meeting of the Working Group is being held right after the Energy Dialogue.

The two Ministers emphasised that bilateral cooperation under the framework of the Japan-India Energy Dialogue will not be limited to those activities mentioned above and will continue to deepen further. They decided to hold the Fifth Ministerial Meeting in Japan at a mutually convenient time in 2011.

For the Planning Commission of India

(Montek Singh Ahluwalia)

(Deputy Chairman, Planning Commission)

For the Ministry of Economy, Trade and Industry of Japan

(Masayuki Naoshima)

(Minister of Economy, Trade and Industry)

New Delhi

April 30, 2010