Tuesday, June 16, 2015

`Oz banks keen on Indian infra' : The Times of India

Mumbai:




Australian firms, banks, pension funds and educational institutes are upbeat about investing top dollar in the world's fastest growing economy after Indian Prime Minister Narendra Modi's trip to Australia in November last year. This may lead to a manyfold increase in bilateral trade that stands at $15 billion, or a-tenth of the size of China's bilateral trade with Australia.

“With the new government in place, there is a lot of excitement about India's economic fortune and prospects. Prime Minister Modi has given assurance of signing a free trade agreement with Australia by the end of this year. We are working towards that as it would lead to billions of dollars of investments in India,“ Patrick Suckling, Australian high commissioner to India, told TOI in an exclusive interview .

The high commissioner said that over $10 billion worth of investments are be ing planned in the mining and energy sector alone with Australian firms such as BHP , Rio Tinto, Thiess, Glencore and Hancock actively considering investing in mining resources like coal, iron ore, gold and diamonds in India.

“We have some of the world's largest mining companies in Australia. They are looking at providing technology associated with mining, especially underground mining, mine safety, coal gasification, explosive technologies and environmental rehabilitation and protection, oil and gas exploration,“ said Suckling.

Besides, Australia is looking at selling natural gas to India to meet its energy needs as Australia is set to become the world's largest gas producer by 2018. “India needs energy security and Australia will be a safe bet as a long-term ener gy supplier for India,“ said Suckling.

In addition to $10 billion in investments in mining, energy and manufacturing sectors, Australian pension funds and banks are looking at funding long-term bankable infrastructure projects in India.

“Our pension fund -with assets under management of $2 trillion, which is likely to become $7 trillion by 2030 -is looking at investing in India in a big way . They are looking at ban kable infrastructure projects in India in road, rail, port sec tor with low risk and long term investments. The top four Australian banks are pre sent in Mumbai and are now looking to expand their busi ness in this country ,“ said Suckling.

Over 50,000 Indian stu dents are in Australia and they form the second largest students' group in Australia after the Chinese. Australian universities are, therefore, looking at coming closer to Indian students by setting up campus in India as and when the Indian government opens up the sector.

“We see that happening sooner than later. Indian students in Australia have grown 15% in the last one year and over 30% in the last one quarter. Our universities may not be part of the ivory league of institutions but, in many cases, they are on a par with the leading institutions. Sev en of our universities are amongst the top 100 global universities and 19 in top 100 list of universities set up in the last 50 years. About 19 Australian universities are working in India through 480 signed MoUs and we could soon have Australian universities setting up campus in India if the policy was relaxed,“ Suckling added.

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