Dharamsala, September 18 – India and China have agreed to work towards signing a Memorandum of Understanding (MoU) in building Road Transport and Highways including border roads, media reports said. Under the MoU, both sides would seek to enhance cooperation in highway construction, exchange of technology and investments in the sector.
Indian Minister for Road Transport & Highways Kamal Nath met Mr Li Shenglin, Chinese Minister of Transport, in Beijing on Wednesday. Nath is leading a high level business delegation of Indian Companies to China.
Nath said that India has embarked on a massive National Highway development programme that proposes to build 7000 km of National Highways every year over the next few years. Nath invited Chinese construction companies and Chinese financial institutions to enhance their engagement with India. Several Chinese companies are already participating in the National Highway Development Project of India.
Nath also met Mr Lou Jiwei, Chairman, China Investment Corporation (CIC) and Mr Dai Xianglong, Chairman of National Social Security Fund (NSSF) and invited them to invest in the National Highways sector of India and briefed them on the high returns that the sector promises to offer.
Nath said he was willing to address Chinese concerns over cap on foreign investment under Securities and Exchange Board of India (SEBI) regulations by considering the possibility of negotiating an economic cooperation agreement in future.
Nath believes Chinese engineering firms had recognised the huge opportunities in India, and were surprised that India had awarded as many as 188 highway projects with a combined length of 7,500 km this year alone.
India in October last year asked China to stop its projects in Pakistan occupied Kashmir (PoK) in view of “long-term relations.” “Pakistan has been in illegal occupation of parts of the Indian state of Jammu & Kashmir since 1947. The Chinese side is fully aware of India’s position and our concerns about Chinese activities in Pakistan occupied Kashmir,” External Affairs Ministry spokesman Vishnu Prakash told reporters last year.
Chinese president Hu Jintao met with the Pakistani Prime Minister Yousuf Gilani last year and reportedly outlined a major project to upgrade the Karakoram highway connecting the two countries overland and offered China’s help in the Neelam-Jhelum hydroelectric project in PoK.
