14 Canada-India deals in the spotlight - Action News
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Politics

14 Canada-India deals in the spotlight

Prime Minister Stephen Harper's first full day in India included a business roundtable meant to highlight recent trade and investment deals. Here's more about the Canada-India agreements touted by International Trade Minister Ed Fast.

Focus of first full day of Prime Minister Harper's Indian tour on 'over $2.5B' in agreements

Prime Minister Stephen Harper met with business leaders in New Delhi on Monday. (Sean Kilpatrick/The Canadian Press)

Prime Minister Stephen Harper's first full day in India included a business roundtable meant to showcase recent trade and investment deals between the two countries.

A news release from the international trade minister's office "estimated" the deals were worth over $2.5 billion, although some of the companies involved did not provide dollar figures for their deals, citing legal or confidentiality concerns.

The government wanted to "highlight recent collaboration between Canadian and Indian companies," providing "increased profile to the deals and ultimately the depth of the Canada-India relationship," a spokesman for International Trade Minister Ed Fast wrote.

"Investment is two-way," Fast told reporters. "There's an investment imbalance in favour of India and we're trying to rectify that."

Canada is hoping to secure a bilateral investment treaty with India, but the negotiations are still ongoing, with no specific timelines given for its completion.

Fast told reporters India still represents a "relatively opaque investment environment" for Canadian businesspeople, with "Byzantine rules" sometimes standing in the way.

Current bilateral trade between the two countries is about $5.2 billion, butboth governments hope to increase that to $15 billion by 2015.

In some cases, Canadian technology is finding new applications in India's transportation and communications sectors.Several of the projectsnamed Monday involve environmentally friendlyor more energy efficientinnovations.

Canadian manufacturing facilities could be built or expanded if some of the deals go ahead. But for other projects, most of the jobs createdare based at plants in India.

Here's more about the agreementsthe trade ministerwaspraising on Monday:

7new deals

  • Prairie Pulp & Paper Inc. of Winnipeg has finalized a technology research and transfer agreement withCentral Pulp & Paper Inc. of Saharanpur, India, to build a wheat straw-basedpaper plant in Manitoba. This new investment of between $500million and $600 million is expected to reducethe company'sannual costs by about $5 million per year.At the moment, the Canadian company markets tree-free papermade in India.

  • Taraspan of Kanata, Ont., and Tulip Telecom from New Delhi, India, are launchinginternet-based voice and datacommunication servicesin more than 2,000 cities in India, using technologyfrom Canada's Mitel Networks Corporation.

  • Electrovaya of Mississauga, Ont.,and Bhaskar Solar from Kolkata, India, signed a memorandum of understanding to implement "renewable energy management solutions" across a proposed 15,000 telecom towers throughout India.

  • Electrovaya alsowill now provideCanadian-made lithium ion batteries for Hero Eco Ltd.selectricbicycles in Europe and North America.

  • Maisliner of La Salle, Que., announced it willopen a new manufacturing plant in India to produce up to 6,000refrigerated trucks a yearfor transporting agricultural products, processed food and pharmaceuticals.

  • Canadian Technology and Business Facilitators Inc. of Hamilton, Ont.,has signed a long-term partnership deal with British-owned economic development firmETI Dynamics, allowing a Canadian consortium to contributewater technologies and trainingto the Ganga River cleanup. The river cleanup isa massive international project billed as a "$100-billion opportunity" the Ontario Clean Water Agency and several community colleges from the province will now have a slice of the work.

  • Export Development Canada, a federal Crown corporation, isproviding $50 million toIndias Reliance Industries Limited to "helpCanadian exportersmeet the Indian companys ongoing and future procurement needs." Reliance Industries is thelargest private-sectorcompany in India and part of the Fortune Global 500.EDC'sloan is part of a larger $1-billion loan from a consortium of international banks. On Monday, Fast characterized the Crown corporation's mandateas filling "gaps left behind by private-sector lenders."

International Trade Minister Ed Fast emerged from the Canada-India business roundtable meeting in New Delhi to tout 14 trade and investment deals said to be worth more than $2.5 billion. (Sean Kilpatrick/Canadian Press)

7 previously-announced deals

  • On Oct. 9, La Coop fdreof Montrealand the Indian Farmers Fertilizer Cooperative (IFFCO), in collaboration with Invest Quebec, revealed plans to start buildinga nitrogen fertilizer plant in Bcancour, Que.This $1.2-billion investment is contingent on a feasibility study as well as the partners raising the remaining capital required for the plant. The plants construction is scheduled to begin in 2014 and it could be producing urea, a nitrogen fertilizer component, by 2017.Upto 200 jobs may be createdin the Trois-Rivires, Que., area if the financing comes through.
  • On Oct. 30, Westport Innovations of Vancouver finalized a deal with Tata Motors of Mumbaito developa natural-gas engine and related technology for the Indian company'slight- and medium-duty trucks and buses. Tata Motors is India's largest engine manufacturer and Westport builds engines that usecompressed natural gas, liquefied natural gas, hydrogen and renewable natural gas fuels such as landfill gas.

  • During the annual meeting of the Clinton Global Initiative in New York on Sept. 24, Westport also announced an agreement to work with New Delhi's Technology Action for Rural Advancement on a project to improve air quality and access to electricity in rural India. Westport's technology will help fuel mobile phone towers with natural gas generators while providing excess power to nearby homes that are currently off the country's electrical grid.
  • Last November (2011), Montreal's Bombardier Transportationwon a $200-million contract from Mumbai Railway Vikas Corporationto design and manufacture equipment for a total of 72 commuter trains with 12 cars each, operating on Mumbai's suburban rail network. Delivery is underway and scheduled to be complete by the end of 2014.Bombardier is building the equipment at its plant inManeja, India.

  • Bombardier has also supplied 614 energy efficient cars forthe Delhi Metro Rail Corporation, a contract worth over $900 million. The final order of 76 cars is expected to be delivered in early 2013 from its production facility in Gujarat State, India.A Bombardier news release issued last year says this manufacturingcreated 780 newdirect jobs and more than 3,000 indirect jobs through their local supplier network in India.

  • On June 7, IRD South Asia Pvt. Ltd. (a division of IRD of Saskatoon) announced it had won a $1.7-million contract with Reliance Infrastructure Limited to build four toll plazas forthe 50-laneGurgaon Faridabad expressway across the state of Haryana in India.The project alsoincludes 12 lanes of electronic toll collection using radio frequency identification readers and transponders.

  • In the spring of 2011,IRD South Asia also signed three other contracts worth $1.5 million toprovide its toll road services in India. It is now the supplier forautomated vehicle counting and classification services in10 locations,high-speed weigh-in-motion systems in five locations andcentralized information systems to 174 other toll plazas across the country.