The Hindu Business Line : Turkey seeks Indian investments in energy transportation sector

SEEKING Indian investments in the burgeoning energy transportation sector of Turkey, involving oil and natural gas, the Ambassador of Turkey to India, Mr Hasan Gogus, said here on Tuesday that the build, operate and transfer (BOT) model being vigorously pursued by Turkey was most attractive to foreign investors.

He described Turkey as a major hub of energy transportation in Euro-Asia, covering Commonwealth of Independent States (CIS) and the Black Sea regions.

Participating in an interactive session organised by the Indian Chamber of Commerce, Mr Gogus said that as per a new law enacted in 2003, foreign-funded investments in Turkey were totally secure. Describing it as an ideal destination for portfolio investments, considering the huge market and skilled labour, he said special focus has been brought on the banking and finance sectors under the on-going privatisation programme .

Calling for greater bilateral trade ties, the envoy said the trade balance was now in India's favour. The trade deficit, which was to the extent of $600 million in 2003, is expected to touch a figure of $900 million, he pointed out.

The mutual trade in the last six years has witnessed a substantial jump to $794 million in 2003, and is expected to touch $1 billion this year. Turkish exports comprising mainly of products such as textiles, leather products and ceramic ware during 2003 had touched $48 billion, and in the first six months of the current year, already hovering around $28 billion - an increase of over 31 per cent over that of the same period in 2003. Imports, which were around $17 billion in 2003, have jumped to $45.5 billion in the first six months of this year.

Expressing disappointment over the ineffective functioning of the Turkey-India Business Council, Mr Gogus said a Joint Economic Council, to be headed by the respective commerce ministers, was expected to meet in October. Pointing out that Turkish consultancy organisations are keen to increase participation in Indian construction projects, he said even joint ventures in third countries could be considered.

Making a presentation on the Turkish economy, Mr Gogus put the country's gross national product (GNP) growth during 2003 at 5.9 per cent, backed by a single-digit inflation rate. Admitting that there was an economic crisis three years ago, with raging inflation, the envoy said vigorous economic programmes through structural adjustments were pursued to bring the economy back on rails. He, however, said the key to all this was a sustained gross domestic product growth through correct economic policies. "Our economy is now fully resilient to both domestic and external shocks," he added.

Earlier, welcoming the envoy, the Indian Chamber of Commerce President, Mr Anup Singh, said economic ties between the two countries need not be confined to only merchandise trade, and that there was a need to examine export of projects and services as a new growth area. Citing Indian companies' impressive credentials in both consultancy and construction, Mr Singh said special initiatives have to be taken by both sides to enhance trade and joint ventures. He strongly advocated exchanges between chambers of commerce, market surveys and participation in exhibitions.