Malaysian firms can tap India's energy sector

KUALA LUMPUR: Malaysian companies, having carved a niche in the Indian infrastructure and property sector, can hope to achieve similar success in tapping the republic's billion dollar energy sector.

With the Indian power sector projected to attract a total investment of US$300 billion (RM885 billion) by 2017, Malaysian power companies are ideally placed to profit from the opportunities which are abound, says the mentor to the Indian Electrical and Electronics Manufacturers Association (IEEMA) Sunil More.

"Malaysian property and infrastructure companies operating in India are highly respected for their expertise and skills in delivering complex infrastructure turnkey projects.

"Those involved in the energy sector can use the country's existing business footprint in India as a platform to enter India's power sector," he said in an interview recently.

Overseas power and related companies have already entered India and there is ample scope for Malaysian power and electrical and electronics companies too.

"In India, consumption economics cannot go wrong, with the huge demand for power. We are adding 13,000 megawatts (MW) every year under the 2007-2012 plan," Sunil said.

India is currently the world's sixth largest energy consumer, accounting for 3.4 per cent of global energy consumption, with an average growth demand of 3.6 per cent per annum.

The sector is looking forward to new investments in its transmission and distribution sector.

"From what I observe, Malaysian companies (operating in India) have demonstrated their strength the way India has done in the IT sector. Currently, there are few Malaysian ventures in our sector although we have Indian players like Kirloskar in Malaysia," he said.

The Malaysia India Comprehensive Economic Cooperation Agreement, which came into effect on July 1 can accelerate the participation of Malaysian players.

Strategic tie-ups and partnerships with Indian companies can lower the barriers of entry and boost market access for Malaysian companies seeking deals in India.

"In our industry, duties are only 10 per cent, not only for finished products but also for raw materials. The potential is huge - the only thing is to strike the right partner and right product, which is where IEEMA comes in," Sunil said.

India's existing energy capacity is 175,000MW, of which 65 per cent is thermal, 20-22 per cent is hydro and 3 per cent nuclear and renewable.