NT
October 9

The Confederation of Indian Industry's (CII) Infrastructure Mission to Kazakhstan and Uzbekistan last month, achieved many positives, as far as business opportunities in these two countries are concerned. One of the encouraging factors is that currency has become fully convertible in Kazakhstan. Massive modernisation is taking place and the Central Asian Republics (CARs) of Kazakhstan and Uzbekistan, have drawn out comprehensive development programmes along with bids to attract foreign investment.

According the CII Mission, Kazakhstan has a well-defined programme for developing Astana, which is its new capital. A special economic zone has been built to attract foreign investment and the Kazakh government has announced special tax holidays for taking up construction of buildings as per the blue print approved by the government, a CII press release here said. There is potential for investment in water projects, oil and gas sector, construction of buildings, roads and bridges and in developing IT parks for Indian companies.

The market conditions appear to be conducive in the region and some Indian companies have already struck good business. There are strong opportunities in the areas of civil construction including roads, hospitals, hotels, tourist destinations and water supply schemes. The presence of Indian industry currently appears to be limited in comparison to other players, who have already established interests there.

Another significant observation, which the mission made, was that the Tengi and Kashegan oil fields in Kazakhstan are developing at a fast pace and there are lots of opportunities for Indian companies.

According the mission, the situation with regard to business environment is good and improving all the time. The Uzbek government has assured the IMF that it would make the currency fully convertible by the year-end.

The government is increasingly giving importance to development of roads and railways. The mission highlighted the fact that Uzbekistan is self-sufficient in gas, oil and in natural resources. Uzbekistan is participating in three regional power transmission projects with Tajikistan, Afghanistan, Kyrgyzstan with ADB/EBRD funding. The Uzbek side presented their capabilities for construction of roads and offered Indian firms to join them to undertake infrastructure projects in Afghanistan and North-South corridor.

It was also learnt that a blue print of Central Asian Regional Power Transmission modernisation project has been prepared by the Central Asian Republics, which would be funded by international funding agencies like ADB, EBRD. However, there was a feeling among the mission members that Indian companies have not explored the region sufficiently enough and to tap the potential, Indian companies should put their efforts together.

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