India is set to potentially lose yet another infrastructure project of interest to it, to China, due to a combination of diplomatic lethargy and inertia in decision-making.
Recently, the Israeli government approved a railway line linking its Red Sea port of Eilat and Tel Aviv on the Mediterranean coast. The “Med-Red” railway line, linking the Mediterranean Sea and the Red Sea offers an alternative to the Suez Canal for trans-continental trade between Europe and Asia. Also, it could facilitate exports of goods and natural gas from Israel to India and beyond. Israeli Premier Benjamin Netanyahu is bullish on the project, saying that “it has created very great interest among the emerging powers, China and India, and others.” Already, the Asian Development Bank, which is financing the TAPI (Turkmenistan Afghanistan Pakistan India) gas pipeline project, has indicated that Chinese companies could be roped in to build the trans-national gas pipeline that will deliver Turkmen gas to India via Afghanistan and Pakistan. The Indian government is not particularly amused by the prospect of a Chinese involvement in the construction of the TAPI pipeline.
The Israeli transport ministry has indicated a preference for a government-to-government agreement with China for tapping the professional capability of the Chinese companies in the construction of railway systems and transport networks.
There is a sliver of hope yet for the Indian state enterprises such as RITES (Rail India Technical and Economic Services) Limited and IRCON (Indian Railway Construction) Interna-tional Limited, both of which are public sector undertakings under the railway ministry. One of the options Israel could look at is international tendering, and, if it opts for it, then Indian agencies stand a chance of becoming involved with the railway project.
An Indian government source explained away the inertia of decision-making by saying that the project has come up in conversations only recently, and, there is no information yet of any likely interest from a PSU or private entity.
The IRCON has completed several projects in 21 countries, including Israel. Similarly, RITES’ operational experience spans over 50 countries in Africa, South East Asia, West Asia and South America.