There’s a lot of Australian interest in the Indian mining sector, just as Indian companies have lined up to invest in the resources sector in that country.
“At the moment, the policy barriers are too high to see a lot of Australian presence on the ground here,” says Mr Peter Varghese, Australian High Commissioner.
JHARKHAND CONTRACT
“We do have one Australian company, Thiess, that’s been given significant mining contract in Jharkhand,” he told
That’s a $5-billion contract for over 20 years to mine coal. And this was given by NTPC. They’re just beginning to see activity on the ground.
“We also have got a number of mining equipment suppliers who’re operating in a smallish way in India.”
And at the other end of the spectrum, there are companies such as Rio Tinto, which has been trying since from 1995 to set up a joint venture iron ore mine in Odisha. “It has still not been able to get the necessary approvals, but is still persevering, showing remarkable patience in my view,” the High Commissioner said.
OIL AND GAS
There is an Australian presence in oil and gases mining in terms of the NELP programme. BHP Billiton is one such, exploring oil and gas in offshore blocks. “So, there is Australian interest here, but the Indian environment, regulatory and otherwise, is seen as very tough to negotiate,” Mr Varghese said.
“We’re currently negotiating a comprehensive economic cooperation agreement, and still it’s very early days. We’re trying to focus on goods, services and investments.
“We will cite what we consider obstacles in the way of Australian investment and access to the Indian market, just as India would be doing the same with us,” he added.