Miti Blog

Ministry of International Trade and Industry Malaysia Official Blog

Rajasthan Wants Malaysian Firms’ Participation In Road Projects

Posted by admin2 on June 16, 2015 at 1:10 pm
AIPUR (Rajasthan), Jan 16 (Bernama) — The northern Indian state of Rajasthan has an ambitious plan to build a 20,000 km road network and wants Malaysian firms to participate in the projects.

The plan, to be executed through public-private partnership (PPP) mode, was announced during the state’s 2014-15 Budget. The first phase of 29 packages will comprise of 8,910 km or 132 highways.

“We are really keen to have the investments from Malaysia,” Chief Minister Vasundhara Raje said during her bilateral meeting with Minister of International Trade and Industry Datuk Seri Mustapa Mohamed on the sidelines of the Confederation of Indian Industry (CII) Partnership Summit 2015 here today.

Also present at the 10-minute meeting was Malaysian High Commissioner Datuk Naimun Ashakali Mohammad.

Vasundhara, who expressed hope the venture would pave the way for many fruitful relationships, also invited Malaysia to be a partner country for the state’s largest investor meet, Resurgent Rajasthan 2015 in November.

Meanwhile, Mustapa said Malaysia is well known for its capabilities in infrastructure development having undertaken various road projects in India.

According to the Construction Industry Development Board (CIDB), Malaysian firms have completed infrastructure projects worth RM18.17 billion in India.

“I will convey the invitation to Malaysians firms in the sector as well as the CIDB,” said Mustapa.

Malaysian companies with a presence in India and involved in various infrastructure projects include IJM, UEM, Ahmad Zaki Resources Bhd, Sunway Construction and Mudajaya.

The state government has proposed to implement the highway project with a financial outlay of Rs 70,000 crore (US$11.27 billion), Rajasthan Public Works Department Principal Secretary D.B. Gupta said.

The state and central governments will contribute 20 per each as viability gap funding but the remaining investment has to come from private investors taking up the projects, he said.

However, he said, for economically non-viable projects, the state government is ready to give an additional 10 per cent funding.

Gupta said a Chinese firm and a number of local road builders have shown interest in the projects, for which the state is also open to government-to-government arrangements.

Rajasthan comprises most of the wide and inhospitable Thar Desert and shares a border with Pakistan along the Sutlej-Indus river valley.

Jaipur, the state’s capital and its largest city, is also known as “Pink City” and is a major tourist attraction.
 

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