India Inc hopes to get Iraq reconstruction biz

Indian industry is hopeful of getting a 'significant portion' of the $300 billion to be spent for reconstruction work in Iraq over the next 5-7 years even as Federation of Indian Chambers of Commerce and Industry is preparing to send its second delegation to the US to make a case for Indian companies.

"Reconstruction work in post-war Iraq will be of a total value of around $300 billion to be spent during the next 5-7 years. We expect Indian companies to get around 10-20 per cent of the amount," Ficci president A C Muthia told reporters in New Delhi.

The first Ficci delegation met US aid agencies.

Ficci is now preparing the agenda to send its second delegation to the US to apprise the American agencies and companies of Indian expertise that could be used in the reconstruction projects in Iraq.

"Another Ficci delegation will leave for the US after a thorough assessment is made by the Ficci office in the US and once the preparatory processes are complete," secretary general of Ficci Amit Mitra said.

The objective of the delegation would be to get contracts and sub-contracts in Iraq for the Indian companies.

Mitra said the first delegation was able to convince the Office of Iraq Programme to accept the entire order of Indian wheat and list that as a priority commodity and continue with the present rate of orders.

Office of Iraq Programme assured the Ficci delegation that tea and LPG cylinders would be considered in the priority list at a later stage depending on the availability of funds.   

With 50 per cent of the initial funds of the $3-billion -- provided by the US from its budget -- going to Britain and other countries for sub-contracting, Mitra said Ficci was already in talks with the British Consultants and Construction Bureau, the body looking after reconstruction work in Iraq.

As it was most likely that majority of the American companies would be sub-contracting and outsourcing, Mitra said they were hopeful of Indian companies doing good business as a large number of American companies were already present in the country and had first hand experience of Indian skills, technology and their cost competitiveness.