NEW DELHI
12 February 2012
India is set to potentially lose yet another infrastructure project of interest to it,
to China, due to a combination of diplomatic lethargy and inertia in decision-making.
Recently, the Israeli government approved a railway line linking its Red Sea port of Eilat
and Tel Aviv on the Mediterranean coast. The "Med - Red" railway line linking the
Mediterranean and the Red seas offers an alternative to the Suez Canal for
transcontinental trade between Europe and Asia. Also, it could facilitate exports of goods
and natural gas from Israel to India and beyond. Israeli premier Benjamin Netanyahu is
bullish on the project, saying that "it has created very great interest in among the
emerging powers, China and India, and others."
Already, the Asian Development Bank, which is financing the TAPI (an acronym for
Turkmenistan Afghanistan Pakistan India) gas pipeline project, has indicated that
Chinese companies could be roped in to build the trans-national gas pipeline that will
deliver Turkmen gas to India via Afghanistan and Pakistan. The Indian government is not
particularly amused by the prospect of a Chinese involvement in the construction of the
TAPI pipeline.
The Israeli transport ministry has indicated a preference for a government-to-government
agreement with China for tapping the professional capability of the Chinese companies
in the construction of railway systems and transport networks.
There is a sliver of hope yet for the Indian state enterprises such as RITES (Rail India
Technical and Economic Services) Limited and IRCON (Indian Railway Construction)
International Limited -- both of which are public sector undertakings under the railway
ministry. One of the options Israel could look at is international tendering, and, if it opts
for it, then Indian agencies stand a chance of becoming involved with the railway project.
An Indian government source explained away the inertia of decision-making by saying
that the project has come up in conversations only recently, and, there is no information
yet of any likely interest from a PSU or private entity.
The IRCON has completed several landmark infrastructure projects across the globe in
21 countries, including Israel. Similarly, RITES' operational experience spans over 50
countries in Africa, South East Asia, West Asia and South America; most of its foreign
assignments are for national governments.
(Deccan Chronicle, Chennai)
3 comments:
For additional reading:
http://www.pmo.gov.il/PMOEng/Communication/Spokesman/2012/02/spokeTrain050212.htm
On 5 February, Israeli Cabinet approves Eilat - Tel Aviv railway line
I am reminded of Prof MD Nalapat's observation:
"[W]hile other governments (notably China, the EU and the US) help their own companies to face foreign competition, India's policymakers help foreign companies enter India, rather than the other way about."
-- extracts from an article, entitled "Iran, Myanmar core to India's interests", published by www.pakobserver.net on 6 January 2012
Indian urban development minister Kamal Nath says all is not lost and that India remains interested in the rail project ...
http://economictimes.indiatimes.com/articleshow/11881678.cms?prtpage=1
India keen to participate in Israeli Red-Med project: Nath
Jerusalem, Feb 14 (PTI) Visiting Urban Development Minister Kamal
Nath has said India has expressed its interest to participate in
the construction of the first-ever rail link between the Mediterranean
and Red Sea coasts.
The proposed rail link, which was unanimously approved by the Israeli cabinet last week, offers a new Asia-Europe trade route that will compete with the Suez Canal.
"Once this project is formed and the road map is clear, Indian companies will evaluate their participation, but I do see good Indian interest in this," Nath said after meeting Israeli Transportation Minister Yisrael Katz and Minister for Trade, Industry and Labour Hsalom Simhon.
Dismissing claims that India lost yet another infrastructure project
of interest to China due to lethargy on its part, Nath claimed the country has already shown its interest for the project and things
are in their very initial stage.
"That's not correct because I have discussed this with the Minister of Transport this morning and it's in a formative stage," Nath said, reacting to some media reports.
"They are in fact welcoming India's participation in this and no country has taken over anything. This will be pursued by the Indian
companies. I think this is an area of potential for enhancing our
engagement," the minister further said.
Nath brought up the issue of participation of Indian companies in the ambitious project during his discussions with Israeli ministers, who are said to have promptly welcomed India's involvement.
The media reports had claimed that the state-owned infrastructure companies could have been benefited from the opportunities in the project, but Indian government's lethargy and inertia in decision
making led China walk away with the bid.
On prospects of gas exploration in the potential reserves off country's northern coast, Nath said he has expressed New Delhi's participation in some form, "on the exploratory side or as a buyer."
"I did mention that India would be interested in participating in some form on the exploratory side or as a buyer, but the Israeli government is still deciding its own policy in this regard," he said, adding that although things are at the very early stage, India has
expressed its interest in this regard.
Israeli media has been constantly talking about exporting natural gas said to have been discovered off Israel's northern coast to countries like India and China using the Red-Med railway line.
The ambitious train link is likely to take about five years for
completion with an approximate investment of USD 2.3 billion. It
will include 63 bridges and five tunnels expanding in a span of some
9.5 kilometers.
Prime Minister Benjamin Netanyahu has termed the project of "strategic, national and international importance," asserting that country has
an interest in creating an alternative route between Asia and Europe to the Suez Canal, and this could serve as an "insurance policy".
"Israel must become a continental land crossing route and create great power interest," Netanyahu had said.
Such a link can be crucial in transporting goods to Europe without having to go through the Suez Canal as the cargo unloaded in country's port city Eilat will then be sent by rail to Israeli ports, and from there to Europe.
In an apparent reference to India and China, Netanyahu said "in
the coming decade, new powers will arise [with whom] Israel must
create vital interests from a national strategy point-of-view."
The Israeli Premier said that both the Asian giants have expressed a great deal of interest in the project. PTI
Ends
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