China Rail Construction to invest in NHAI projects
The Dollar Business Bureau
China Railway Construction Corporation Ltd. (CRCC) has expressed keen interest to invest in National Highways Authority of India (NHAI) projects.
"A high-level delegation from the CRCC, led by its Chief Economist Zhao Jinuha, met Chairman, NHAI, Raghav Chandra and a team of NHAI officers in New Delhi," Ministry of Road Transport and Highways said in an announcement.
At present, the NHAI has various projects for the upgradation of two-lane National Highways for 50,000 kms, several special expressway projects of 15,000 kms and the National Highways Development Programme (NHDP), to be completed over the next few years.
"CRCC expressed keen interest to participate in the upcoming projects of NHAI under engineering, procurement and construction (EPC) and hybrid annuity model (HAM)," the statement said.
The Chinese government-owned company has market capitalisation of $250 billion and total revenue of $100 billion and.
CRCC has developed over 80% of China’s rail network and about 60% of the country’s highways.
On Monday, NHAI officials met CRCC's Chief Economist Zhao Jinuha to discuss India’s ongoing and upcoming highway projects, traffic growth and financial constraints.
"They are interested to bid for 2,000-3,000 km of highway projects, which is a positive sign for us," Chandra said.
The Chinese representatives discussed with the Indian highways authorities on any restriction on procurement sources from abroad, requirements of import certifications and whether the US currency could be the mode of repayment. The delegation also asked if the Chinese technology and technical standards could meet the Indian government’s expectations.
India’s infrastructure projects have of late attracted several international bidders and investors. Road transport and highways minister Nitin Gadkari is currently on a seven-day visit to the USA, where he is set to meet several investment firms in a bid to attract investments in the country’s investments-starved sector.