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Despite reservations about 'power and manpower' in India, several large German companies - including BMW, Volkswagen, Bosch, Deutsche Bank and Boehringer - have pledged to invest millions of euros in the country over the next few years.
This was announced after a breakfast meeting of 13 top German CEOs with Prime Minister Manmohan in Hannover on Sunday morning.
Apart from Dr Singh, the Indian delegation comprised Commerce Minister Kamal Nath, Science and Technology Minister Kapil Sibal, power secretary R V Shahi, and secretary Department of Industrial Policy and Promotion Ajay Dua.
Bosch will invest euro 500 million for a auto component unit in India, Siemens will invest euro 600 million, and BMW will invest euro 600 million to set up a passenger car manufacturing unit in Chennai, while Volkswagen is examining the prospects of investment.
Siemens and ABB have also expressed interest in the ultra mega power projects planned in India.
A Memorandum of Understanding was signed between the Indian and German Railways to help upgrade the Indian rail network and facilities and undertake joint research projects.
Allaying German reservations over India's lack of energy and technical manpower, (most young Indians preferred to join the information technology sector, and there was a dearth of electrical, electronic and other engineers in the country, the CEOs felt), Dr Singh said the government was aware of this problem and had set up a task force to help correct
this anomaly.
The German Delegation comprised:
Dr Karsten Ottenberg, chairman of management CEO, Giesecke and Devrient, which prints banknotes for many Central banks worldwide. Its subsidiary, Papierfabrik Louiseenthal has a tie-up with the ministry of finance and the Reserve Bank of India.
Peter Smits, chairman of the board of engineering giant ABB Germany, which
already has major investments in India, Sepp Dieter Heckmann, chairman of the managing board of Deutsche Messe AG, which runs, develops and plans mega trade fairs worldwide.
The outfit is now considering acquiring huge tracts of land in Mumbai to develop one of the largest trade fair complexes in India, on the scale of the Hannover trade expo.
Rudold Weinmann, owner and CEO Digisound Electronik which manufactures electronic components, telephone bells and warning signal transmitters for cars, and has a wholly owned subsidiary in Pune was also present.
Anton Weinmann, chairman of the executive board, MAN Nutzfahrzeuge AG, which manufactures heavy vehicles, diesel engines for commercial vehicles, boats and ships and automotive components. The company will soon set up a truck manufacturing facility in Pitampura near Indore as part of a joint venture with Force Motors Ltd, (formerly known as Bajaj Tempo) and has signed a letter of intent to manufacture buses.
Hubert Leinhard, member of the corporate management board of Voith AG, Heidenhem, which has interests in paper, energy and service markets. Voith Seimens Hydro Power Generation has equipped nearly a 100 Indian hydro-power stations with turbines and generators.
Volkmar Preub, managing director of OEtker GmbH, which mainly manufactures food products, but is also involved in brewing, shipping, banking and financial services including insurance.
Dietmar harting, president and partner of Harting KgaAA institute for standardisation, which has been working with the Bureau of Indian standards over technical standards.
Klaus Wucherer, executive vice president Siemens, the 3rd largest German company, which will celebrate 50 years of manufacturing presence in India this year.
Dr Albert Hiernonimus president of the Indo-German Chamber of Commerce, and managing director, of the Bosch group's Motor Industries Co Ltd, which has just announced an increase in its investments in India.
Bernhard Steinrucke, director general of the Indo-German Chamber of Commerce and former managing director of ABC Bank, which is mostly owned by his family. His wife is Indian.
Thomas Pferr, chief controlling officer, Satellic Traffic Management GmbH, a subsidiary of T systems, a global technology leader and service provider of developing and operating electronic charging systems based on satellite technology like GPS and Galileo.
After the hour-long meeting, Commerce Minister Kamal Nath told journalists that nearly 70 per cent of German investments in India over the past two years were in the manufacturing sector.
"It's very important for India to seek investments in manufacturing from Germany as it is the largest manufacturing base in Europe. The interesting thing now is that German companies are investing in manufacturing and Information Technology simultaneously," he said.
Announcing BMW's plans to set up a euro 600 million passenger car manufacturing plant near Channai, he said BMW had expressed appreciation over the speed at which their proposal was cleared, describing it as the 'fastest they have encountered anywhere in the world.'
While optics giants Carl Zeiss and Baerlochel want to set up R & D centers in India, Deutshce Bank proposes to start business process outsourcing units for their global services in India, he said.
Nath further said that, "German companies want exhibition grounds in Mumbai. They feel that the facilities in Delhi are inadequate, while Mumbai has none. They are interested in forming a joint venture like a similar tie-up they already have in Shanghai."