Iraq revalidates contracts worth 3 B with India

Tuesday, 12 August 2003, 19:30 IST
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Iraq's interim government has revalidated contracts worth over 3 billion with India, including 300,000 tonnes of a wheat export order under the U.N. Oil for Food programme.

NEW DELIH: "These contracts include around 300,000 tonnes of wheat, which is about half the quantity of a wheat export order Indian companies had bagged in 2001 under the U.N. programme," Anil Agarwal, chairman of the Indo-Iraq Joint Business Council, said at a press conference here Tuesday. "The contracts of six companies which hold contracts for supply of wheat to Iraq have been revalidated. It should be possible to start shipment of consignments soon," he said. Agarwal had led a 30-member Federation of Indian Chambers of Commerce and Industry (FICCI) delegation to Amman and Baghdad from August 2-7 to help Indian companies scout for business opportunities as also urge the Iraqi and U.N. authorities to revive pending contracts worth around 5 billion. Besides orders for wheat supply, several contracts for engineering, electronic and other products have been revived. The orders under the U.N. programme have to be fulfilled by September 21, though officials are hopeful of an extension till November 21. In the interim there is a scramble by companies to get their orders revived to beat the deadline. "All Iraqi ministries have lost their documents and are totally dependent on the documents to be submitted by the suppliers. By personally going there, these companies were able to get their contracts revalidated. The Iraqi ministries also showed keenness to work with Indian companies for future purchases," said Agarwal. The efforts of the delegation have created an enabling atmosphere for India to revive contracts for export of 8,000 tonnes of tea, said Y.K. Modi, senior vice president of FICCI. "The possibility of Indian tea exports to Iraq being resumed is a distinct possibility as the authorities there are willing to consider pending orders," said Modi, adding the companies concerned should personally approach officials in Baghdad. To help such companies, FICCI is considering taking another delegation in the near future. According to Agarwal, the Indian delegation was able to get a head start. Indian products are already being supplied in Iraq through companies in Amman, which accounts for around 40 percent of the current trade with Baghdad, and Dubai. Local business is slowly reviving in the war-torn country, the officials said. Around 150 representatives of Iraqi business showed great interest in striking deals with Indian companies and expressed keenness to source a range of products from India. "The Indian delegates were able to propose and finalise a number of contracts. These included deals by companies like Usha International for fans, Flex Engineering Ltd., Yamuna Gases and Chemicals Ltd., Jaguar Overseas of the Jindal Group for pipes and steel, and Indo Asian Fusegear Ltd.," said Agarwal. Despite the tense and often violent skirmishes witnessed in Baghdad, several delegation members stayed back in Iraq, while some moved to Amman for further talks to finalise trade deals.
Source: IANS