CII organized the 4th India – Latin America & Caribbean(LAC) Conclave at New Delhi on 29 – 30 April 2010. It was attended by a host of dignitaries, which included overseas delegates from that region and members of the diplomatic corps/Ambassadors.

The Inaugural address was delivered by Mr. Jyotiraditya Scindia, Minister of State for Commerce and Industry, Government of India and the Valedictory Address by Mr. Sachin Pilot, Minister of State for Information Technology, Government of India.

CII invited OIA Chairman, Ambassador V. B. Soni as a special guest to preside over the Session on
“Sectoral Synergies in Infrastructure, Engineering and Project Management”

We bring a full coverage of the Opening Remarks delivered by OIA Chairman, Ambassador
V. B. Soni:

Let me start by talking about India's approach towards project export as a business strategy.

The emergence of India on the world stage as one of the fastest growing economies in the world even in the difficult times of global economic slowdown has been acknowledged by all. The country became a trillion dollar economy in 2007 and is ranked the fourth largest economy in the world by GDP measured on a Purchasing Power Parity (PPP) basis. The country has emerged as a global player in information technology, business process outsourcing, telecommunications and pharmaceuticals.

From an inward looking insular approach during the initial years after independence in 1947 Indian corporate sector is being encouraged to venture out in foreign markets. India's coming of age would be apparent when one sees that instead of exporter of goods and services it has now diversified itself in to a project exporter.

The one business strategy that is bound to be long lasting and enduring has to be to move away from merely trading in commodities to project exports.  Instead of being a one-off commodity export, conceptualizing a development project, planning its scope and implementing it would be a challenge worth pursuing. The process of putting the project in place may be time consuming but would leave a legacy behind.

Accordingly the business model which should be used as a part of strategy is through project development particularly for infrastructure development with a view to contributing to capacity building, skill development and transfer of technology locally. The infrastructure put in place in this manner would moreover create knock-on opportunities for trade and bilateral business relations.

Bulk of the developing countries in Latin Amercian region do not necessarily need sophisticated push button technology for their requirement. Appropriate technology is the need of the hour for them. In this Indian companies are ideally placed to replicate their own firsthand experience gained from initial period of economic development immediately after independence. Besides it is cost effective. This model appeals to the clients because of the long term involvement and commitment shown by the contractor/developer.

One problem that some countries may find is with regard to finding finances for the projects particularly the big ones. In case this is not available locally or from international financing institutions that can hold up crucial programmes indefinitely. In this regard mention may be made of Government of India's commitment to offer Line of Credit on soft terms through EXIM Bank of India to the countries in Latin America and the Caribbean.  The only condition for this kind of loan is that this capital can be utilized with the involvement of the Indian companies. Nevertheless this funding option has proved to be very popular with increasing number of developing countries.

Let me recount the track record of my project development and management Company, Overseas Infrastructure Alliance (India) Pvt. Ltd. (OIA). Through understanding of the client country's specific requirement it analyses and develops projects in various fields.

OIA's field of specialization is infrastructure development. The company's ‘niche' experience is in identifying development bottlenecks and design customized solutions. Drawing on the experience of seasoned professionals, OIA successfully delivers even complex projects, meeting time, cost and quality criteria. It works closely with carefully selected alliance partners that are of global standards.