Indian firms can play major role in rebuilding Iraq

As far as reconstruction of Iraq is concerned, the government on Monday identified roads, airports, ports, communication system, waste treatment plants, power generation and distribution, housing and oil projects as sectors where the domestic industry to participate in.

"Indian industry will have to look at sub-contracting of major reconstruction contracts likely to be awarded to US and UK firms... it looks like getting crumbs but that is how it is to begin," R M Abhyankar, secretary, ministry of external affairs said in New Delhi during an interactive session on reconstruction of Iraq.

Indian personnel skilled in maintenance and operation of air tariff, port operations, hospitals, communication systems and computer systems are likely to be in great demand as the reconstruction work in war-ravaged Iraq begins, he said.

For the Indian industry, contracts for repair and maintenance of roads, bridges, airports, ports, communication system, water treatment plant, waste disposal system, power general and distribution, housing and commercial complexes and upstream and downstream oil projects present an opportunity.

Besides, there is tremendous scope for trading of consumer goods like wheat, milk and milk products and also medicines, he said.

Assuring full government support in helping Indian Inc secure sub-contracts, Abhyankar advised companies to exploit the free trade zone and Special Economic Zone in Jordan for doing business in Iraq as the two countries shared a porous border with no visa and customs restrictions.

For trading, he advised Indian firms to take help from Kuwaiti middlemen to ensure that their money is not lost.

Abhyankar asked the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry to approach Iraqi reconstruction as one unit.

"We should look at getting business in Iraq as one entity," he said.

Indian Ambassador to Iraq B B Tyagi said that Indian companies would be better off if they package their deal in such as way so as to give employment to Iraqi people.

"We should have medium term view of Iraq. Iraq will provide good opportunities for investment. We believe Iraqi economy will be privatised and investor friendly. Indian Industry should set sight on investing in such environment in the short to medium term," he said.

Speaking on the occasion, Subir Raha, chairman of the National Task force on Reconstruction of Iraq, said a CII delegation would visit Kuwait from May 27-29 to meet the Kuwaiti and US companies.

"We are also looking at setting up an office in Kuwait as a short term measure and move it eventually to Baghdad," he said, adding that the Indian industry would look at opportunities to participate in the reconstruction of Iraqi industry, trade and services.

Besides, CII is also exploring sub-contracting of major contracts from firms in the United States and the United Kingdom.

A CII delegation would participate next month at the extraordinary annual meeting of the World Economic Forum with the theme 'Vision for a Shared Future' in Amman, Jordan from June 21-23, he said.

"We are also in the process of take several other initiatives, including inviting some of the large American and British companies to visit India," Raha said.