money started talking
Industry sees Rs 120k-cr business opportunity- Indicators-Economy-News-The Economic Times
Industry sees Rs 120k-cr business opportunity
8 Sep, 2008, 0000 hrs IST,Mahima Puri, ET Bureau
India Inc is optimistic that the NSG waiver and India’s entry into the elite nuclear club will have significant economic spin-offs. It is hopeful that this development will put the country’s high-technology trade and business in the high-growth trajectory.
While the benefits are expected to reach beyond the power sector, a low-hanging fruit of the deal is that it will provide an opportunity for Indian manufacturers to gain technological expertise in the supply of spares and components for the nuclear power plants.
According to industry body CII, in the mid- and long-term, India has an opportunity to become an export hub of these spares and components. “The NSG clearance has now directly opened up business opportunities worth Rs 1,20,000 crore in the next 15 years. “
The nuclear deal will also enable addition of new capacity and help fulfil the target of adding 63,000 MW by 2030,’’ says CII.
These developments should benefit infrastructure and power companies such as NTPC, Jindal, Larsen &Toubro, Tata Power and Reliance Power. Other companies that have traditionally not been in this field may also make a foray in this sector given the magnitude of the business potential.
In addition to power, other high technology sectors such as semi conductors, advanced manufacturing, precision engineering, defence equipment, advanced and specialty chemicals, electronics, sensors, environmental technology, space, automation and robotics, and pharma. While some sectors will be helped by removal of restrictions on import of dual technology items and technology, others will get an opportunity to tap the potential created by nuclear trade.
According to a senior official from Larsen & Toubro, the spurt of activities would be experienced in the pharma and T space. He says: “IT can help in terms of software services, data management and control & automation. Also, the R&D skills from the pharma sector may play a crucial role. The R&D staff in pharma is well-equipped to handle the sensitive technologies which India will get access to. They may also prove crucial in handling the chemical transformations and temperature control in the nuclear plants.”
Says a senior official from Larsen & Toubro, “The deal would open gates for huge private investments by international companies and players into the Indian economy. This includes strategic co-operation between Indian companies and their international counterparts. India will get access to closely-held and sensitive technologies. Among the sector which will benefit apart from power are defence, IT, insurance and pharma.”