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India, Canada sign $75 million line of credit

BS Regional Bureau

India and Canada signed a $75 million line of credit to finance the supply of good and services by Canadian exporters on June 13. The financing will benefit Canadian companies selling goods and services to the power sector in India.

The line of credit was signed between the Canadian Export Development Corporation and the Union power minister Suresh Prabhu in Toronto.

Fifty of Canada's leading companies dealing with power generation, transmission and distribution, maintenance and upgradation of power plants and non-conventional energy sources interacted with Prabhu.

Prabhu is in Canada as a state guest to attend a seminar on "Reforms and opportunities in Indian power sector", organised by the Canada-India Business Council.

"India would henceforth focus on making the distribution sector viable. India requires 100,000 MW of power in the next ten years and has an identified 150,000 MW hydro potential. In the light of Canada's expertise in hydro, Canadian companies could actively take part in the bidding process and utilise India's hydro potential," he said.

Listing policy initiatives taken by the Indian government to attract investment in the power sector, Prabhu said foreign investors were allowed 100 per cent equity in power projects, concessional rate of customs duties and a five year tax break for new power projects.

The international trade minister of Canada, Pierre Pettigrew announced that he would lead a trade mission to India in September.

"There are many excellent opportunities for Canadian companies in India, including energy, which is one of the most promising sectors for Canadian exporters," Pettigrew said.

Secretary of state (Asia-Pacific) Rey Pagtakhan said, "Broadening our relationship with India - one of the largest markets in the world - promises to be quite beneficial for Canadian businesses."

The government of Canada is actively promoting increasing trade presence in India through a series of seminars across Canada, he added.

The Government of India in collaboration with the Confederation of Indian Industries and FICCI organised five international conferences in the fields of "Fossil Fuel Generation", "Non Fossil Fuel Generation (Hydro and Non conventional energy resources)", "Transmission", "Distribution" and "Modernisation of Existing Plants".

Pettigrew noted that Canadian companies wanted to increase their investments in India and volunteered to come with a business delegation for the hydro conference in October.

He also agreed to inaugurate the conference and make Canada a partner country for the same. In later meetings with David Cliche, Quebec minister of research and technology and Bryne Purchase, deputy minister of energy, science and technology, Ontario, co-operation in the hydro sector and modernisation of plants was discussed.

Both ministers volunteered to make their provinces partner states for some of the conferences and send delegations of Canadian companies from their provinces to these states.

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