MALAYSIA, INDIA
Agreements on projects worth RM30 billion to be signed
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.