ASEAN KEY DESTINATIONS
Malaysian firms go after India highway projects
Malaysian construction players are slated to participate in the development of 1,000km of highways in India that could potentially be worth RM17.5bil.
India's Road Transport and Highways Minister Kamal Nath said the first project under this initiative was expected to roll out in the next six months.
"Although currently Malaysian construction companies have been participating in India's infrastructure development, we want to take this to the next level where we want to enhance not only in terms of the numbers of players involved but also in the length of kilometres undertaken.
"The opportunities are not only restricted to the building of highways. There are also other areas such as landscaping, tolling technologies as well as management and maintenance of highways.
"India has a major infrastructure programme as we have a huge infrastructure deficit because our growth has preceded infrastructure development. "At the moment we are not building for the future but we are catching up with the past," he said.
It is reported that India has embarked on a major road construction programme, where 7,000 kilometers of roads are expected to be developed annually.
To date, Malaysian companies have been involved in 74 construction projects worth RM14bil in India, half of which were road infrastructure projects.
Kamal said Malaysia was the only country with which India had developed this kind of arrangement under the MoU.
"That demonstrates our relationship, where Malaysia has the strength and skills in the road sector coupled with its construction capacity that we need in India," he said. On details of the MoU, Kamal said that identified projects would go through a price discovery mechanism which would have to be mutually agreed by both governments.
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