MALAYSIA, IN­DIA

Agree­ments on projects worth RM30 bil­lion to be signed

New Straits Times - - News -

B. SURESH RAM KUALA LUMPUR news@nst.com.my

MALAYSIA and In­dia are ex­pected to sign some 15 mem­o­randa of un­der­stand­ing (MoUs) and sev­eral agree­ments on in­fra­struc­ture de­vel­op­ment projects worth some RM30 bil­lion.

The MoUs and agree­ments are ex­pected to be signed by both na­tions dur­ing the week-long of­fi­cial visit by Prime Min­is­ter Datuk Seri Na­jib Razak to the South Asian na­tion, which will kick off on Thurs­day.

The prime min­is­ter’s visit is at the in­vi­ta­tion of his In­dian coun­ter­part, Naren­dra Modi.

Though many of the agree­ments inked will be at the govern­ment-to-govern­ment (G2G) level, other agree­ments in­volv­ing trade and busi­ness will be at the busi­ness-to-busi­ness (B2B) level.

Key agree­ments ex­pected to be signed, in­volv­ing in­fra­struc­ture de­vel­op­ment, will be on urea and am­mo­nia projects, liq­ue­fied nat­u­ral gas sup­ply and the con­struc­tion of a tech­nol­ogy park.

Spe­cial En­voy (In­fra­struc­ture) to South Asia Datuk Seri S. Samy Vellu, whose of­fice was in­stru­men­tal in clinch­ing in­fra­struc­ture deals, said one of the projects would be im­ple­mented in Malaysia while three other projects would be im­ple­mented in the South­ern In­dian state of Andhra Pradesh.

The Malaysian por­tion of the projects will see the pro­posed de­vel­op­ment of urea and am­mo­nia man­u­fac­tur­ing plant in Penin­su­lar Malaysia.

The RM8.8 bil­lion project has the ca­pac­ity to pro­duce 2.5 mil­lion met­ric tonnes of urea and am­mo­nia per an­num.

“It will be for a ded­i­cated sup­ply to the Repub­lic of In­dia,” he said in an ex­clu­sive in­ter­view with the New Straits Times.

Samy Vellu said the G2G project was a huge deal for Malaysia, as only Oman had a sim­i­lar ded­i­cated deal to sup­ply urea and am­mo­nia to In­dia.

A B2B agree­ment will see the in­volve­ment of a Malaysian con­sor­tium and In­dian gov­ern­mentlinked com­pa­nies for the sup­ply of urea and am­mo­nia.

The for­mer works min­is­ter said the cost of the project in Malaysia was be­ing worked out, but was ex­pected to sup­ply one mil­lion tonnes of urea and am­mo­nia an­nu­ally to In­dia.

The urea and am­mo­nia project will also see an­other RM7.9 bil­lion project com­pris­ing a man­u­fac­tur­ing plant be­ing set up in Andhra Pradesh. The agree­ment is ex­pected to be signed be­tween Malaysian com­pany Isomeri Hold­ings Sdn Bhd and VBC An­dra Pradesh.

The other ma­jor project ex­pected to be signed dur­ing the visit is a RM4.42 bil­lion Fourth Gen­er­a­tion Tech­nol­ogy Park be­tween the Malaysian In­dus­try Govern­ment Group for High Tech­nol­ogy (MIGHT) sub­sidiary MIGHT Tech­nol­ogy Sdn Bhd, and the Eco­nomic De­vel­op­ment Board of of Andhra Pradesh.

The project will be im­ple­mented in a 40.4ha area in Amar­a­vathi, the new state cap­i­tal of Andhra Pradesh .

An­other B2B deal will be signed for a float­ing stor­age and re­gasi­fi­ca­tion ter­mi­nal. The RM2.2 bil­lion project will be im­ple­mented in Kak­i­nada Port, Andhra Pradesh.

Samy Vellu said the lat­est in­fra­struc­ture projects were among the big­gest that Malaysia had been in­volved in In­dia.

It was also the first time that one of the projects would be im­ple­mented in Malaysia, he said.

“These projects will be the hall­mark of Prime Min­is­ter Datuk Seri Na­jib Razak,” said the for­mer MIC pres­i­dent.

He said the lat­est projects were all due to the good job done by Malaysian com­pa­nies in pre­vi­ous in­fra­struc­ture projects in In­dia.

He ac­knowl­edged that the ease of do­ing busi­ness in In­dia these days had paved the way for in­creas­ing in­vest­ments in the na­tion with a 1.3 bil­lion pop­u­la­tion.

“Ini­tially, it was tough. We (Malaysia) were hardly known. Now, it is dif­fer­ent. They wel­come us,” he said, adding that the close ties forged over the years at the cen­tral and state level had also made this pos­si­ble.

Samy Vellu said he was con­fi­dent that Na­jib’s visit to In­dia would strengthen re­la­tions be­tween the two na­tions.

PIC BY ASWADI ALIAS

Spe­cial En­voy (In­fra­struc­ture) to South Asia Datuk Seri S. Samy Vellu dur­ing an in­ter­view with the New Straits Times in Kuala Lumpur re­cently.

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