R/€ = 13.29
R/$ = 11.70
Au 1207.85 $/oz
Pt 1174.50 $/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 Infrastructure News
Updated 7 hours ago Eastern Cape Treasury MEC Sakhumzi Somyo has committed the province to ramping up infrastructure development and maintenance and improving transport logistics, noting at the announcement of the latest provincial budget that this would improve the province’s regional...
Updated 6 hours ago The Sustainable Energy Society of Southern Africa (Sessa) on Friday called on the Department of Energy (DoE) to follow its three-step “rescue plan” aimed at resolving the uncertainty surrounding the administration of the solar rebate programme. Sessa said its...
Updated 7 hours ago South Africa's National Union of Mineworkers (NUM) said on Friday it would oppose any attempt by cash-strapped power utility Eskom to sell assets, especially its finance company which helps provide home loans to employees. Eskom CE Tshediso Matona told the Reuters...
Recent Research Reports
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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
This Week's Magazine
The World Bank, the European Union, the African Development Bank (AfDB) and the government of Sweden have agreed to provide Zimbabwe and Zambia with $294-million for the repair of structural deformations on the Kariba dam wall and avert the possible collapse of the...
Executive chairperson of the Global Electricity Initiative (GEI) Philippe Joubert says energy utilities globally, together with the business community more generally, have come to terms with the science of climate change, particularly as extreme weather events begin...
JSE-listed Emira Property Fund reported distribution growth per participatory interest (PI) of 9% for the six months ended December 31, 2014.
Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
Consulting Engineers South Africa (Cesa) last month said it was dismayed that the Department of Water and Sanitation (DWS) was seconding 35 Cuban engineers on a two-year contract to share their expertise with South African engineers in the water sector.