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The Japanese funding agency Japan International Cooperation Agency (JICA) has now changed its financing strategy to fund the major infrastructure projects in India. JICA has decided to prevent non-Indian firms from participating in tenders of JICA funded new metro rail projects in India.
Alstom India has expressed unhappiness over the restrictions placed by Japanese funding institutions preventing non-Indian firms from participating in new metro rail projects including phase II of the Chennai Metro Rail project.
Showing his dissatisfaction over the concern, Alain Spohr, managing director – India & South Asia, Alstom said:
We are unhappy as we are being restricted from participating in certain tenders, based on conditions put forth by the Japan International Cooperation Agency (JICA). “One of the things which I am not happy at all about is that after doing all these investments, including in factories and people etc., I am not allowed to be considered an Indian company and bid on those tenders. We cannot bid as we do not have that much percentage of Japanese content.
Spohr said that JICA had laid down certain clauses, such as around 30-35% of purchases have to be from Japanese or Indian companies that are owned by Indians. Due to such restrictive clauses, Alstom was unable to participate in two to three tenders. The value of each tender was about €250 million. In another way, it was a loss of €250 million for Alstom India.
“Though we are in India, we are not considered an Indian company. We have made representations to the concerned persons. But nothing has happened. But still, I think the government should ensure that for future jobs, fair play is respected” said another official.
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However, officials from Chennai Metro Rail Limited (CMRL) saying that these fears are unfounded. Alstom India has already provided trainsets for phase I and the phase I extension of the Chennai Metro project and may well be able to participate in the phase II project as well.
“In the 118.9 km project of phase II, the restrictions [that a certain percent of components should be Japanese] are only for 52 km. For the remaining, we will call for tenders and they can certainly participate in it”, a CMRL official said.
The post JICA prevents non-Indian firms in participating in future metro rail projects in India appeared first on Urban Transport News.
This article first appeared on urbantransportnews.com
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