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New Delhi is putting its weight behind the country’s telecom and oil companies that have placed bids to participate in Myanmar’s economy, which is slowly opening up to foreign countries.
Domestic firms in the fray include Bharti Airtel, Jubilant, ONGC Videsh and Oil India. Commerce and Industry Minister Anand Sharma, in his meetings with top Myanmarese Ministers, has lobbied for a favourable treatment to be given to Indian companies in both sectors, a Commerce Department official said. This could also serve to balance China’s dominance in Myanmar’s economy, the official added. “We discussed cooperation in the telecom sector. I told the minister that given our geographic contiguity, it will be easier for us to build the required infrastructure,” Sharma said after his meeting with Myanmar’s Communication and IT Minister U Myat Hein on Friday.
While Sharma did not name any particular company, the only Indian company that is in the race for the telecom licences being offered by Myanmar is Bharti Airtel.
“The Minister did make a case for licences being awarded to an Indian company. Myanmar’s Minister said that he had full faith in the capability of Indian companies to win a licence. Let us see what happens,” the official said. Bharti Airtel Chairman Sunil Bharti Mittal had told Business Line on Thursday that his company’s business model of low prices and rural rollout could help it clinch a deal.
The Minister also made a case for the seven Indian oil companies participating in the bidding for 18 on-shore blocks in Myanmar. In his meetings with both the energy and IT ministers, he also emphasised on the strategic need for engaging more with India.
Chinese dominance
“China is dominating Myanmar’s economy so far because most countries avoided dealing with it during the military rule. The country needs to favourably consider Indian companies in various fields to loosen China’s stronghold on the economy,” the official said.
Investment flow
Sharma told the Myanmarese Ministers that both the countries have potential for future collaboration in oil and gas exploration, infrastructure, IT, pharmaceutical, manufacturing and education and skill development. He said that over the next few years, investment flow from India to Myanmar will increase to about $2.6 billion (Rs 14,836.5 crore). At present, India is the tenth largest investor in Myanmar with an investment estimated at $273.5 million (Rs 1,560.7 crore).
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