US businesses are “extremely excited’’ about the opportunities the Modi Government has to offer and want to engage with India in a bigger way, says Leocadia Zak, Director, US Trade and Development Agency.
In an interview with BusinessLine , Zak outlines her agency’s ongoing efforts to create avenues for American companies in infrastructure and energy sectors in India, especially in the proposed smart cities, where there is a need for better technology and expertise. Excerpts:
We launched our energy cooperation programme in 2010 providing a platform for Government-to-Government interaction as well as for the private sector. An area where we seem to have made a difference is reliable power distribution. USTDA provided grant funding for planning activity for Tata Power focussing on North Delhi for their grid. As a result of using better technology for development of better grid and distribution mechanisms, it has been able to reduce losses from 53 per cent to 11 per cent.
Are you working with other cities too to bring down their electricity transmission losses?
We are working in Delhi, Bangalore, Mumbai and Kolkata. As people cut down transmission losses, it decreases the amount of generation that may be required and also is a quick way to conserve power in the early stages.
Your agency is funding a feasibility study for development of shale gas and shale oil in India. What are the prospects?
Clearly, the US is one of the experts in shale gas. But it has to be adapted for each market. So, a lot of issues need to be looked at like the reserves and the topography. Right now, it (the study) is at the beginning stage and we are also examining whether there is environmental integrity.
Is there a difference in the way the US industry is viewing India with the new Government in place?
I was in Washington DC during Prime Minister Narendra Modi’s visit and was also involved in a number of dialogues, both with the State Department and the private industry. There is a great deal of excitement right now with respect to the available opportunities. I think businesses are very excited and want more engagement.
The Government is trying hard to attract FDI in infrastructure. Are US companies interested?
There is huge interest in the transport sector. In aviation, we are already cooperating. There is a need for technology for creating efficiencies and safety and security that we can provide. And as there is a focus on smart cities and collaborations with respect to smart cities, that’s one of the areas we are looking at.
President Obama and Prime Minister Narendra Modi also talked about opportunities in railways. There are opportunities with respect to using technologies such as tracking assets that can be introduced to make the system more efficient. With recent relaxation in FDI rules in railways, there is renewed interest (of investors) in the area.
We are also looking at ports where technology is important for efficient navigation and flow of trade.