Identifier
Created
Classification
Origin
07NEWDELHI3654
2007-08-10 11:35:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy New Delhi
Cable title:
NEW DELHI WEEKLY ECON OFFICE HIGHLIGHTS AUGUST 6-10
how-toVZCZCXRO7052 RR RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW DE RUEHNE #3654/01 2221135 ZNR UUUUU ZZH R 101135Z AUG 07 FM AMEMBASSY NEW DELHI TO RUEHC/SECSTATE WASHDC 7465 INFO RUEHCG/AMCONSUL CHENNAI 1144 RUEHCI/AMCONSUL KOLKATA 0627 RUEHLH/AMCONSUL LAHORE 4085 RUEHBI/AMCONSUL MUMBAI 0304 RUEHPW/AMCONSUL PESHAWAR 4623 RUEHIL/AMEMBASSY ISLAMABAD 3786 RHEBAAA/DEPT OF ENERGY WASHDC RUEATRS/DEPT OF TREASURY WASHDC RULSDMK/DEPT OF TRANSPORTATION WASHDC RHMFIUU/FAA NATIONAL HQ WASHINGTON DC RUEHRC/DEPT OF AGRICULTURE WASHDC RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
UNCLAS SECTION 01 OF 02 NEW DELHI 003654
SIPDIS
SENSITIVE
SIPDIS
USDOC FOR ITA/MAC/OSA/LDROKER/ASTERN/KRUDD
DEPT OF ENERGY FOR A/S KHARBERT, TCUTLER, CZAMUDA, RLUHAR
DEPT PASS TO USTR DHARTWICK/CLILIENFELD/AADLER
DEPT PASS TO TREASURY FOR OFFICE OF SOUTH ASIA ABAUKOL
TREASURY PASS TO FRB SAN FRANCISCO/TERESA CURRAN
STATE FOR SCA/INS AND EB/TRA JEFFREY HORWITZ AND TOM ENGLE
E.O. 12958: N/A
TAGS: EAGR EFIN EINV ETRD ENRG SENV IN
SUBJECT: NEW DELHI WEEKLY ECON OFFICE HIGHLIGHTS AUGUST 6-10
REFERENCE: A) CHENNAI 00187, B) MUMBAI 459
NEW DELHI 00003654 001.2 OF 002
UNCLAS SECTION 01 OF 02 NEW DELHI 003654
SIPDIS
SENSITIVE
SIPDIS
USDOC FOR ITA/MAC/OSA/LDROKER/ASTERN/KRUDD
DEPT OF ENERGY FOR A/S KHARBERT, TCUTLER, CZAMUDA, RLUHAR
DEPT PASS TO USTR DHARTWICK/CLILIENFELD/AADLER
DEPT PASS TO TREASURY FOR OFFICE OF SOUTH ASIA ABAUKOL
TREASURY PASS TO FRB SAN FRANCISCO/TERESA CURRAN
STATE FOR SCA/INS AND EB/TRA JEFFREY HORWITZ AND TOM ENGLE
E.O. 12958: N/A
TAGS: EAGR EFIN EINV ETRD ENRG SENV IN
SUBJECT: NEW DELHI WEEKLY ECON OFFICE HIGHLIGHTS AUGUST 6-10
REFERENCE: A) CHENNAI 00187, B) MUMBAI 459
NEW DELHI 00003654 001.2 OF 002
1. (U) Below is a compilation of Economic highlights from EMBASSY
New Delhi for the week of August 6-10, 2007.
KERALA RE-TENDERS $580 MILLION
PORTIMPROVEMENT PROJECT AFTER
CHINESE BID REJECTED
--------------
2. (U) Kerala has re-invited global bids for a $580 million project
to develop a deepwater seaport and container transshipment terminal
at Vizhinjam, near the southern tip of the Indian peninsula. The
government of Kerala had awarded the project to a Chinese consortium
in 2006, but the state was forced to re-tender because India's
central government refused, despite much pressure from Left parties,
to grant the necessary security clearances (reftel). The project
aims to increase the depth of the port from 16 meters to 18.7
meters, which would accommodate ultra large container ships,
including "Suezmax" vessels capable of transporting 12,000 20-foot
containers each. Details of the project can be viewed at
www.vizport.org. (Reftel A).
SEBI CHAIRMAN DAMODARAN
SPEAKS ON REGULATION
--------------
3. (U) On August 9, Securities and Exchange Board of India (SEBI)
Chairman, M. Damodaran delivered the prestigious annual JRD Tata
Memorial Lecture. Damodaran, a very relaxed and often witty public
speaker, avoided policy signals and spoke generally about India's
environment. He called for a transparent process in the appointment
of regulators, with adequate compensation and fixed tenures. The
SEBI Chairman noted critically that India is setting up more
financial regulatory organizations rather than enlarging and
strengthening existing ones. Damodaran also claimed that India is
pushing some self-regulation, but that industry is resisting the
responsibility. He underscored the need for functional as well as
budgetary autonomy for the financial regulators. At the same time,
he chastised those in government - and industry - who think the
government has a "remote control" to command actions from within the
regulator. Finally, Damodaran stated that he was confident that
Mumbai could become an international financial hub, but reiterated a
previous assertion that time was short for Mumbai to do so before
others surpassed the city and made it redundant (Reftel B).
SINGAPORE'S BILATERAL ECONOMIC
AGREEMENT WITH INDIA
--------------
4. (SBU) Econoff met on August 3 with Singapore EMBASSY First
Secretary Timothy Chin and discussed the status of the
SIPDIS
India-Singapore Comprehensive Economic Cooperation Agreement (CECA),
which the two countries signed in 2005. Chin started by noting that
the two sides had just concluded their first two-year review of the
agreement, aimed at expanding it. He assessed that the discussions
went well and finalization on the expanded agreement should be done
relatively quickly.
5. Chin then commented ruefully that Indian officials often moved
uncomfortably slowly and bureaucratically in implementing the CECA.
However, he noted that his government felt a strong commitment to
strengthening the economic relationship, despite the challenges.
Chin offered a metaphor - that in Asia, China and India are the
wings of economic growth, but ASEAN is the body of the plane, i.e.,
the regional group is economically buoyed by linkages to both large
countries. When Econoff asked specifically about the bank branch
portion of the agreement, Chin conceded that Indian officials had
tried to revisit the provision in the 2005 CECA that Singapore
should receive 14 new branches within five years, which is on top of
India's WTO obligation of 12 new foreign branches a year. The
recently-concluded discussions had resolved the issue
satisfactorily, Chin stated, and Singaporean banks would soon get
more branches in India.
NEW DELHI 00003654 002.2 OF 002
6. (U) Visit New Delhi's Classified Website:
http://www.state.sgov/p/sa/newdelhi
WHITE
SIPDIS
SENSITIVE
SIPDIS
USDOC FOR ITA/MAC/OSA/LDROKER/ASTERN/KRUDD
DEPT OF ENERGY FOR A/S KHARBERT, TCUTLER, CZAMUDA, RLUHAR
DEPT PASS TO USTR DHARTWICK/CLILIENFELD/AADLER
DEPT PASS TO TREASURY FOR OFFICE OF SOUTH ASIA ABAUKOL
TREASURY PASS TO FRB SAN FRANCISCO/TERESA CURRAN
STATE FOR SCA/INS AND EB/TRA JEFFREY HORWITZ AND TOM ENGLE
E.O. 12958: N/A
TAGS: EAGR EFIN EINV ETRD ENRG SENV IN
SUBJECT: NEW DELHI WEEKLY ECON OFFICE HIGHLIGHTS AUGUST 6-10
REFERENCE: A) CHENNAI 00187, B) MUMBAI 459
NEW DELHI 00003654 001.2 OF 002
1. (U) Below is a compilation of Economic highlights from EMBASSY
New Delhi for the week of August 6-10, 2007.
KERALA RE-TENDERS $580 MILLION
PORTIMPROVEMENT PROJECT AFTER
CHINESE BID REJECTED
--------------
2. (U) Kerala has re-invited global bids for a $580 million project
to develop a deepwater seaport and container transshipment terminal
at Vizhinjam, near the southern tip of the Indian peninsula. The
government of Kerala had awarded the project to a Chinese consortium
in 2006, but the state was forced to re-tender because India's
central government refused, despite much pressure from Left parties,
to grant the necessary security clearances (reftel). The project
aims to increase the depth of the port from 16 meters to 18.7
meters, which would accommodate ultra large container ships,
including "Suezmax" vessels capable of transporting 12,000 20-foot
containers each. Details of the project can be viewed at
www.vizport.org. (Reftel A).
SEBI CHAIRMAN DAMODARAN
SPEAKS ON REGULATION
--------------
3. (U) On August 9, Securities and Exchange Board of India (SEBI)
Chairman, M. Damodaran delivered the prestigious annual JRD Tata
Memorial Lecture. Damodaran, a very relaxed and often witty public
speaker, avoided policy signals and spoke generally about India's
environment. He called for a transparent process in the appointment
of regulators, with adequate compensation and fixed tenures. The
SEBI Chairman noted critically that India is setting up more
financial regulatory organizations rather than enlarging and
strengthening existing ones. Damodaran also claimed that India is
pushing some self-regulation, but that industry is resisting the
responsibility. He underscored the need for functional as well as
budgetary autonomy for the financial regulators. At the same time,
he chastised those in government - and industry - who think the
government has a "remote control" to command actions from within the
regulator. Finally, Damodaran stated that he was confident that
Mumbai could become an international financial hub, but reiterated a
previous assertion that time was short for Mumbai to do so before
others surpassed the city and made it redundant (Reftel B).
SINGAPORE'S BILATERAL ECONOMIC
AGREEMENT WITH INDIA
--------------
4. (SBU) Econoff met on August 3 with Singapore EMBASSY First
Secretary Timothy Chin and discussed the status of the
SIPDIS
India-Singapore Comprehensive Economic Cooperation Agreement (CECA),
which the two countries signed in 2005. Chin started by noting that
the two sides had just concluded their first two-year review of the
agreement, aimed at expanding it. He assessed that the discussions
went well and finalization on the expanded agreement should be done
relatively quickly.
5. Chin then commented ruefully that Indian officials often moved
uncomfortably slowly and bureaucratically in implementing the CECA.
However, he noted that his government felt a strong commitment to
strengthening the economic relationship, despite the challenges.
Chin offered a metaphor - that in Asia, China and India are the
wings of economic growth, but ASEAN is the body of the plane, i.e.,
the regional group is economically buoyed by linkages to both large
countries. When Econoff asked specifically about the bank branch
portion of the agreement, Chin conceded that Indian officials had
tried to revisit the provision in the 2005 CECA that Singapore
should receive 14 new branches within five years, which is on top of
India's WTO obligation of 12 new foreign branches a year. The
recently-concluded discussions had resolved the issue
satisfactorily, Chin stated, and Singaporean banks would soon get
more branches in India.
NEW DELHI 00003654 002.2 OF 002
6. (U) Visit New Delhi's Classified Website:
http://www.state.sgov/p/sa/newdelhi
WHITE