Myanmar is emerging as the next big investment destination for India Inc.
Top Indian companies are preparing to
invest $2.6 billion in a host of industries, including
telecommunications, energy and aviation.
Though somewhat late in entering a
neighbouring country that is emerging from the shadows of decades-long
military dictatorship, India seems to be determined now to make up for
the time it lost there.
Countries like the US, Japan and China have all started making deep inroads there.
At present, Indian investments in
Myanmar stand at around $273.50 million. This is expected to soar to
$2.60 billion in the next few years. Some of companies that are already
present there are the state-owned ONGC Videsh Limited (OVL), Jubilant
Oil and Gas, and Century Ply among others.
Other Indian investors having operations
in Myanmar are: Tata Motors, Essar Energy, RITES, Escorts, Sonalika
Tractors, Zydus Pharmaceuticals Ltd., Sun Pharmaceuticals Ltd, Ranbaxy,
Cadila Healthcare Ltd, Shree Balaji Enterprises, Shree Cements, Dr.
Reddy’s Lab., CIPLA, Gati Shipping Ltd, TCI Seaways, Apollo, AMRI.
Recently, during the visit of Indian
Commerce and Industry Minister Anand Sharma there, the government set up
India-Myanmar Joint Trade Committee.
It will be co-chaired by Bharti Enterprises’ Sunil Bharti Mittal. The first meeting of the committee took place on June 7.
The Myanmar government awarded two
telecom licenses under their new policy framework. Bharti Airtel has
been shortlisted for submission of final bids.
"Out of Myanmar’s total trade volume of
over $18 billion, India accounted for around 7.5 percent (in 2011-12)
and India is behind China, Singapore, Thailand and Japan in exports to
Myanmar," DS Rawat of Assocham told Business Standard newspaper in an
interview.
India-Myanmar bilateral trade has
expanded significantly from $12.4 million in 1980-81 to $1,070.88
million in 2010-11. With Myanmar exports to India at more than three
times its import value, trade balance has been in favour of Myanmar in
the last several years, Rawat said.
In the oil and gas sector, the Myanmar
government has shortlisted 59 companies for submission of final bids for
18 onshore gas blocks on offer. Seven Indian companies are part of
those shortlisted. OVL and GAIL have already announced $1.33 billion
investment in China-Myanmar gas pipeline project.
The construction of two parallel
pipelines for gas and oil has been awarded to India’s Punj Lloyd. It
involves an investment of $475 million for building the 200km-long
Kyaukphyu-Kunming Oil & Gas pipeline.
Jubilant Energy India has also won the
government’s contract worth $73 million for exploring an onshore block
in Central Myanmar.
India has urged the Myanmar government
to revive discussions on the gas pipeline connection between India and
Myanmar through Bangladesh.
For this, the Indian government has recommended Essar Ltd.
Recently, Myanmar government opened
tendering for exploration and production of onshore and offshore oil
blocks. For the 18 onshore blocks, Indian companies have been qualified
for second round of bidding process. They include both public sector and
private companies, such as OVL, Jubilant, and Cairn energy group.
In order to create a better
connectivity, India’s SpiceJet has asked for operating rights for flying
to Yangon from Delhi through Dhaka (Bangladesh).
India is also involved in Myanmar’s
infrastructure development, like building inland waterways and the
upgradation of the Sittwe Port. Shipping Corporation of India Ltd. (SCI)
has completed a feasibility study to start a liner service between
India and Myanmar.
source: Eleven Myanmar
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