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INDIA
BUSINESS WORLD -
DECEMBER 2005
THE MONTH THAT WAS
CHINESE COS TO INVEST IN INFRASTRUCTURE
National security will no longer keep Chinese investment out of infrastructure sector. For the first time, the Prime Minister's Office has intervened to allow Chinese infrastructure companies to set shop in India. To start with, three leading Chinese companies Evergreen Marine Corporation, Hutchison Port Holdings and Huawei are likely to take up infrastructure projects in India. The world's leading port developer Hutchison Port Holdings and Evergreen Marine Corporation have been given the go ahead to bid for container and offshore terminals in Chennai and Mumbai. Hutchison of Hong Kong and Evergreen of Taiwan are the only two global shipping players that were unable to invest in India due to the lack of security clearance.
The issue was taken up strongly. Hutchison is among world leaders in port development and is operating ports in the UK and Panama, among other countries. They have finally been given the security clearance, shipping secretary D T Joseph told ET. The proposed investment of Rs 1,165 crore in offshore terminals in Mumbai is one of the largest investments in the port sector. In Chennai, the second container terminal is being privatised and will require an investment of around Rs 492 crore. According to shipping ministry officials, Hutchison is likely to bid in a consortium with L&T while Evergreen is most likely to bid alone.
In the former case, Hutchison will be the management contractor to undertake the development of the port while L&T will provide the finances. The Hong Kong-based company had expressed interest in bidding for the third terminal of the Jawaharlal Nehru Port Trust in 2003. However, its application was rejected as it was denied security clearance. Recently, the company showed interest in developing the proposed offshore container terminal at Mumbai port. The Mumbai Port Trust wants to develop the terminal under a joint venture with a domestic or foreign-based company. |
