Mah CM secures Chinese aid for key infra projects

CM Fadnavis has managed to convince leading Chinese firms to invest their funds and technical expertise in a slew of important infra development projects lined up in the state, writes Rajesh Kulkarni.

Maharashtra Chief Minister Devendra Fadnavis' five-day tour of China is likely to result in closer cooperation between the state and leading Chinese firms in key areas like infrastructure, IT, tourism, automobiles, electronics, engineering, railways and seaports.

To begin with the Shandong Hi-Speed Group company has agreed to a partnership with the MSRDC and MMRDA for infrastructure development in Mumbai and the rest of state, starting with the crucial Nhava-Sheva Trans-Harbour Link, the proposed six-lane, 22-km long freeway road bridge connecting Sewri, in south Mumbai to Nhava Sheva in Navi Mumbai.

Also figuring high on the CM's list of priorities were the Mumbai, Pune and Nagpur metro projects in addition to the ambitious high-speed corridor project between Nagpur and Mumbai.

According to informed sources, CM Fadnavis was keen to utilise the Chinese expertise at building advanced projects at a lesser cost. He further revealed that Chinese infrastructure companies were highly keen on investing in the state and were ready to finance projects at an interest rate of 2-6 per cent per annum.

The emphasis was clearly on gaining from the Chinese expertise at developing the much-needed infra facilities back home like seaports, sea-links, bridges and high-speed trains across both urban and rural areas, to enhance connectivity and minimise delays.

And if the numbers are any indication the CM has clearly been quite successful in his endeavour with a long list of Chinese majors including the China Roads and Bridge Corporation, China Harbour Engineering Corporation, China Communication services Corporation, Zhu Lei of Yapp, Automotive (biggest fuel tank manufacturer), Foxconn and China Gezhouba Group International Engineering Co Ltd, slated to visit the state in the near future to take forward the discussions on investing in the state.

The process seems to have already begun with close to 1,000 hectares of land near Pune being set aside for Chinese major BeiqiFoton, for its proposed manufacturing unit for light transport vehicles. Foxconn, an electronics contractor manufacturer is also reportedly keen to set up a base in the state and looks at India as an export market.

An elated Fadnavis is said to be now focussing on improving the understanding between Chinese and Indian business methods and tax laws to enhance this partnership and encourage more investments into the state's infrastructure requirements.

According to him one of the primary reasons for the inadequate levels of Chinese investment in the state in the past was the inability of both Indian and Chinese firms to understand and comply with each other's ways of doing business and the relevant tax laws and regulations. A situation that needed to rectified to enhance the scope for bigger economic collaborations in the years ahead.

Having inked investments worth an estimated US$ 500mn, not including the MoUs, the Maharashtra chief minister has every reason to terms his China sojourn a success, however the fact remains that it was the Gujarat delegation led by its CM Anandiben Patel, that managed to sign the maximum MoUs - 26 to be exact - with Chinese firms during the trip.

The focus of the Gujarat delegation, according to informed sources, was on garnering Chinese investments and expertise for its ambitious water linking project worth an estimated INR 26, 000cr, which is crucial to help the state overcome its prevailing water crisis.

Maharashtra CM Devendra Fadnavis, Gujarat CM Anandiben Patel and Karnataka CM Siddaramaiah, along with their respective business delegations, were part of the Prime Minister Narendra Modi's recent official visit to China from May 14-16. The objective was to meet important members of the Chinese government and entrepreneurs to seek investments for their states.

Though not an official part of the PMs delegation the three CMs travelled separately to be there in Beijing when Modi arrived. Maharashtra CM Fadnavis is said to have even cancelled his five-day tour of Japan scheduled from May 13-17 to make the China trip alongside the PM's visit.

China is India's biggest trading partner globally with two-way commerce between the two Asian giants totalling close to US$70bn, but India's trade deficit with China has soared from just US$1bn in 2001-02 to more than US$40bn.