Nath invites SEZ funding

[ 24 Nov, 2006 0111hrs ISTTIMES NEWS NETWORK ]


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MUMBAI: Commerce minister Kamal Nath wants Chinese money to flow into
India's Special Economic Zones (SEZs). Responding to a query on the
government's position on letting unfettered access to Chinese
investments in the country, he said, "We will get Chinese companies to
invest in SEZs."

He was speaking on sidelines of a trade and investment summit that was
addressed by Chinese president Hu Jintao. By 2010, Nath said, India will
receive at least $5 billion in direct investments from China. He also
suggested that both countries should diversify the composition of their
trade baskets to encourage two-way trade.

Before that happens though, there are many contentious issues between
both countries that need to be resolved. Like, movement of people
between both countries. Very recently, Chinese technicians were denied
visas to work at an SEZ in Andhra Pradesh on security grounds.

The issue is also on the mind of Mukesh Ambani-controlled RIL which is
trying to bring in 1,800 Chinese workers to lay pipeline from the KG
Basin on the Eastern coast to Dadri in the north and Jamnagar in the west.
The security issue has also raised its head in other sectors like
telecom and ports. Two Chinese companies along with a Mumbai-based
bidder that had won the bid to develop the Vizhinjam deep water
container terminal in Kerala was denied security clearances.

While the Kerala government was hoping the Jintao's visit would clear
the air, no clarity has emerged from both sides on the issue yet. A
Kerala state official said chief minister VS Achuthananthan alongwith
the port and law minister, M VijayaKumar will meet Prime Minister
Manmohan Singh on Vizhinjam issue on November 29.

Nath and his Chinese counterpart Bo Xilai called for "an early and
substantive resumption and conclusion of the Doha round of
multi-laterial trade negotiations."

Both the ministers observed that inflexible stances had led to the
suspension of the talks in July 2006. But now, proactive negotiations
must resume to ensure that success does not remain elusive.
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