Emaar, Etisalat issues likely to figure in India-UAE high-level meet next week
Concerns faced by its state-owned enterprises, including real estate major Emaar and telecom giant Etisalat in India, UAE is expected to take up the matter at the high level investment body meeting next week.
A Commerce Department official told Business Line that, Anand Sharma ,Union Commerce and Industry Minister in his meeting with the the Managing Director of Abu Dhabi Investment Authority Sheikh Hamed bin Zayed Al Nahyan ,is likely to discuss UAE’s proposed $2 billion investment in the country’s infrastructure sector and also support for the establishment of a strategic oil reserve.
Last year the high-level investment body was established, to sort out problems faced by UAE companies in India and to facilitate the $2-billion investment roadmap, is scheduled to meet in Mumbai on March 3.
The official said, “Although the UAE is interested in making more investments in India, it is not happy that many of its companies that have invested here are being investigated for various offences.”
In India UAE has invested about $8 billion so far, out of which $2.6 billion is in the form of Foreign Direct Investment.
India had promised to sort out the problems as early as possible, in its last meeting.
Dubai-based Emaar’s joint venture with Indian company MGF has been slapped for using foreign funds to buy agricultural land, and is fined 8,500-crore. Enforcement Directorate is investigating the matter.
After the Supreme Court cancelled a number of telecom licences as fallout of the 2G scam, the country’s telecom major, Etisalat decided to exit its Indian arm Etisalat DB, which is also facing similar problems.
The official added The Finance Ministry, last year, had assured UAE that the country would try to ensure that a distinction is maintained between local promoters and foreign investors so that the latter was not harassed.
“We will assure UAE that everything is being done to sort out existing problems,” he further added.
India is seeking investments from the UAE in the following areas petrochemicals and fertilisers, infrastructure, food processing and agro-based industries, construction and real estate, education and training (to cater to UAE’s manpower requirements), and civil aviation.
Source: Business Line
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