NEW DELHI: "The selection of Larsen and Toubro by Bechtel, which has bagged an estimated $680 million contract for reconstruction work in Iraq, has raised hopes of other Indian companies, many of which have decided to intensify efforts to get similar contracts," a senior official of the Confederation of Indian Industry (CII) told IANS. Bechtel is one of the principal U.S. companies to have won projects for the reconstruction of Iraq. Members of a delegation led by CII to Kuwait returned here Saturday after "satisfying one-to-one meetings" with their Kuwaiti counterparts and with Bechtel officials during an interactive conference on May 28, the official said. While some Indian companies, including state-owned majors, are still to firm up plans, others like state-owned Bharat Heavy Electricals Ltd have started approaching Bechtel on their own to cash in on previous work association on various projects in Iraq. It was this past association that helped Larsen and Toubro make the first breakthrough. "The in-principle approval received by Larsen and Toubro has encouraged several companies to consider establishing a presence in Kuwait to scout for opportunities in a tie-up with Kuwaiti counterparts," said the official, who was part of the CII delegation. The three-day interaction with the Kuwaiti Chambers of Commerce and Industry, the Kuwait-India Business Group and the India Business Council, as also Kuwaiti companies, made it evident to Indian companies that it would take some time for the situation in Iraq to stabilise. The CII has proposed the setting up of an India-Kuwait Joint Economic Business Group to enhance cooperation. The proposal is to be discussed during the return visit by officials of the Kuwaiti Chambers. "We were told that security is a real concern in Iraq, which has made companies uncertain about sending goods across the border from Kuwait and other areas as there is no surety of their safe delivery," the official said. "Besides the safety factor, there is still lack of free access." Authorities in Iraq are still to assess the extent of damage and the amount of reconstruction required. With the situation still not very clear, several Indian majors are mulling establishing a presence in Kuwait and many have extended their stay to explore opportunities. "Many of the companies have decided to go back either on their own or under the umbrella of CII to project a joint approach as they feel a conglomerate approach may serve their interest better," the CII official said.
Source: IANS