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India has sought wider access to Myanmar’s energy and banking sectors as the two countries targeted doubling two-way trade to $3 billion in the next two years.
Public sector bank United Bank of India has set up a representative office in Myanmar and is expecting to be given permission to open full-fledged banking services, while Bank of India and State Bank of India are also hopeful of getting a nod, an Indian Government official told Business Line .
In his meeting with Myanmar’s Energy Minister U Than Htay on Thursday, Commerce and Industry Minister Anand Sharma discussed interest of Indian banks in setting up their branches in Myanmar.
“India will be happy to assist in strengthening the banking system in Myanmar as we inherit common banking laws,” the Minister said.
Sharma also pushed the case of Indian companies that have bid for the 18 on-shore blocks offered by Myanmar on a production-sharing basis in the initial phase.
“Our companies are interested in securing more exploratory oil and gas blocks both onshore and offshore,” Sharma told Htay.
Seven Indian companies including OIL, OVL, Cairn India and Jubilant Energy are reported to be amongst the short-listed companies.
The issue of the revival of discussions on the gas pipeline connection between India and Myanmar through Bangladesh was also discussed by the two ministers, an official release said.
With Myanmar’s military rulers making way for a democratically elected Government in 2010, India, like several other countries, has now extended a hand of cooperation to the isolated country in all economic fields. India stands to gain in a lot of sectors such as finance, telecom, energy and manufacturing.
“We feel that setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce,” the official said.
India’s imports from Myanmar stood at $1.4 billion in 2012 while its exports to the country were just $542 million.
Apart from doubling trade, India also hopes to increase its investments in the country several-fold over the next few years. So far, Indian companies likeTata Motors, Essar Energy, RITES, Escorts (Agri Machinery), Sonalika Tractors, Zydus Pharmaceuticals, Emcure Pharma, Sun Pharmaceuticals, Ranbaxy and Cadila Healthcare have invested $273.5 million in the country. Of the total investment, $257.7 million investment has been in the oil and gas sector and $ 16 million in the manufacturing sector.
Indian firms have shown keen interest in investing in Special Economic Zones (SEZs) in the country and the Government may be willing to offer $150 million of credit for project exports for setting up an SEZ at Sittwe, the official said.
amiti.sen@thehindu.co.in
(Tour has been sponsored by Commerce Ministry and CII)
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