R/€ = 13.14
R/$ = 12.05
Au 1200.03 $/oz
Pt 1139.50 $/oz
Aug 04, 2006
SA firms invited to participate in Indian infrastructure overhaulBack
© Reuse this South Africa’s infrastructure – the lack and poor condition thereof being the sub-ject of much debate currently – is still a paradise compared to Indian infrastructure, says Indian High Commissioner Satyabrata Pal.
He notes that India’s current economic growth of 9%, with 10% possible next year, could have been 2% to 3% higher, had the country’s infrastructure been better.
“India always used to say ‘education, edu-cation’; now the mantra is ‘infrastructure, infrastructure’.” Pal says the Asian country’s infrastructure hunger means there are many opportunities for South African companies to work in what he notes will be the world’s second-largest market within the next ten to fifteen years.
An Indian investment commission has selected some areas where the need is most urgent.
Pal says the country needs an additional 100 000 MW of electricity by 2012, as well as 60 000 km of transmission lines, which translates into an investment of $200-billion.
“Here we allow 100% foreign investment.” This is also valid for the $50-billion to $60-billion investment needed in road infra-structure.
Pal says Indian ports require an investment of $18-billion, airports $15-billion, with $50-billion of real-estate development planned over the next five years.
It is in the mining industry, however, where the most immediate opportunities lie.
“There are enormous mines lying dormant in India, because we do not have the tech-nology to go deeper,” says Pal.
India requires technical expertise in deep-shaft mining, but South African companies, the world leaders in deep-level mining, are noticeably absent in the Indian mining sector. Instead, the Australians are present, pro-claiming that the South Africans’ skills are no better than their own, says Pal.
Between $20-billion and $40-billion has been earmarked to develop and upgrade coal mines alone.
Pal laments that South African/Indian rela-tions are not stronger than what is currently the case. He describes political relations as being “warm” and “close”, but regards economic relations as being in need of a “wake-up call”.
“The level of trade is not where it should be.” Last year bilateral trade between India and South Africa reached R14,5-billion, or $2,5-billion, which was a 75% leap from the 2004 level. The aim is to increase this substantially, up to around the $10-billion mark by 2010.
Pal says there are many efforts being made for the countries to increase trade activity, with the Indian prime minister, Dr Manmohan Singh, for example, likely to visit South Africa in the next few months.
India is also set to participate in several South African trade shows over the coming months.
“This shows that South Africa is very much at the centre of our radar screen; this should have happened earlier.”
Edited by: Irma Venter© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.