The Hindu Business Line : ‘About 100 Indian companies have set up offices in Westphalia’

If sourcing of power from non-conventional sources increases in India, a number of companies from NRW would be interested in both investing and offering technologies. We see good investment potential in biomass, solar, wind and hydroelectric projects.

MS CHRISTA THOBEN, MINISTER OF ECONOMIC AFFAIRS AND ENERGY, NORTH RHINE-WESTPHALIA, GERMANY

Rahul Wadke

Ms Christa Thoben, Minister of Economic Affairs and Energy of the State of North Rhine-Westphalia (NRW), Germany, was recently on a visit to India along with a large delegation of companies from NRW. She is keen for more German energy companies to invest in India, and spoke to Business Line about various areas of Indo-German business cooperation.

Excerpts from the interview:

What do you think of Indian companies going global? Are they in NRW too?

The global perspective on India is changing. Companies are no longer coming to India to produce goods at lower

prices. They are here to tap the Indian market and the growing opportunities. India is increasingly becoming a global player and participating in the global market place. Yes, Indian companies are coming to Germany to tap the European markets. Indian companies are not acquiring German companies to acquire technology, transfer it to India, dispose of the factory and move on. They are working strategically, consolidating their operations. They are employing additional workforce and planning for the European market.

Foreign investors usually have problems with the Indian bureaucracy, comparing it to a large elephant moving at its own pace…

Companies have issues with bureaucracy all over the world. But, as one German entrepreneur recently said, if you want to do business in India, you must have a lot of time and patience. But I do believe there is a problem in terms of delays in getting permissions.

However, the bigger problem is lack of infrastructure. The first thing one notices in a city like Mumbai is poor infrastructure.

Globalisation has acquired a new variant, ‘glocalisation’. Companies are going global and local simultaneously, as part of the increasing cultural interface. Do you notice this with German companies?

Globalisation will follow certain trends. But even so people do not follow every trend faithfully. Basically, if everyone had the same tastes, that would be terrible. Globalisation and glocalisation will go hand in hand.

The Metro store in Bangalore, for example, which is managed by a German retailer, has a very standard product display globally. But in Bangalore it is adapting products to Indian needs.

I found it very funny that Metro sells dress material along with matching buttons. This would be unheard of in Germany. So companies have global scale and competence but are also going local.

What can NRW offer Indian companies?

NRW is one the strongest industrial states in Germany. It offers considerable strategic advantage for business due to its location. Using the state roadway network, companies can reach 100 million customers across Europe. Companies offering all major technologies have offices in the state.

About 100 Indian companies have already set up offices in NRW. It is the Number One state for conventional and non-conventional energy technologies. Our energy companies have higher plant load factor (PLF).

If sourcing of power from non-conventional sources increases in India then a number of companies from NRW would be interested in both investing and offering technologies.

We see good investment potential in biomass, solar, wind and hydroelectric projects. During my visit in 2007, a number of German non-conventional companies had visited Maharashtra.

Germany also wants to develop projects under the clean development mechanism which will earn carbon credits. Preliminary talks are underway with Maharashtra State Energy Generation Company Ltd for these projects.

It will be a win-win situation for both parties. German companies such as RWE are also interested in CDM projects, especially for reducing transmission and distribution losses.

A year ago, when I visited Maharashtra, the T&D losses were 29 per cent and now they have reduced to 22 per cent. Therefore we see a good opportunity in this area.

Do you have a target for German investment in India?

We want German companies to bid for tenders of energy companies in India. They could also take equity participation in the projects. German banks like KfW could invest in Indian companies. We don’t have targets for investment as German companies are independent and financially sound to take their own decisions about investments. Indian power companies are investing billions of dollars in new projects. The role of the NRW Government would be to give fast-track information about these Indian companies and their investments to German companies. We want German companies to bid and win the projects.

What are the prospects of bio-CNG projects being launched in India, since German companies have the technologies?

We have deep interest in bio-CNG projects. Bio-waste, which is the source for the CNG, is a valuable resource. But it will not obviate the need for conventional power plants. Power plants based on bio-CNG would be more viable at village level or areas not connected to the power grid.

Photo by Shashi Ashiwal

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