India to see US$60bn investment SASEC OP projects
India is expected to develop 74 potential projects, costing about US$60 billion, over the next five years as part of the South Asia Subregional Economic Cooperation (SASEC) Operational Plan (OP).
These projects are mostly in the North East or Eastern part of the country.
Overall, the SASEC OP has identified over 200 potential transport, trade facilitation and energy projects costing over US$120 billion in investments for the next five years in the South Asian Sub-region.
The development in India is expected to start with two Economic Corridors and one Road Bridge, costing US$1.2 billion, while the region is expected undertake seven other projects.
The Asian Development Bank (ADB) is financing US$1.43 billion of the estimated US$2.42 billion for the nine projects under SASEC OP.
Commenting on the development, Raj Kumar, Joint Secretary, Department of Economic Affairs, assured of India’s support for the SASEC OP.
These projects “will improve our economic linkages with East and Southeast Asia in accordance with India’s Act East policy”, he said in a press release issued by the Public Information Bureau on 31 March 2017.
The seven other projects comprise of two US$890 million rail developments in Bangladesh, trade facilitation and airport projects in Bhutan worth US$27 million and key SASEC road and energy projects in Nepal worth US$302 million.
These nine projects represent a significant increase compared to the previous 15 years, when the annual average value of projects approved was only about $500 million.
The projects are part of SASEC OP’s thrusts of developing road and rail links aligned closely with trade routes toward the east, streamlining trade procedures, and improving energy infrastructure.
The Indian corridor projects reflect the SASEC OP’s recent shift in emphasis on developing economic corridors within and between member countries.
Established in 2001, the SASEC program is a project-based partnership to promote regional prosperity by improving cross-border connectivity, boosting trade among member countries and strengthening regional economic cooperation.
ADB is the secretariat and lead financier of the SASEC program, which to date has supported a total of 46 projects worth $9.17 billion in transport, trade facilitation, energy and information and communications technology (ICT). fii-news.com
