Chile is keen on working with India in areas like renewable energy, biotechnology, agricultural sciences, transportation, mining and lithium-based industries said H.E Mr Guido Girardi, President of the Senate of the Republic of Chile
In a meeting with the CII members here on Friday, Mr Guido said there was tremendous scope for partnership between Chile and India in areas of renewable energy, especially, geo-thermal, tidal wave, wind, biomass and solar. He said the country has set a target of generating 20% of its energy needs, especially in the copper mining sector, by 2020.
He said Chile considered the lack of crude oil or coal reserves as an opportunity to develop renewable energy sources.
He said India and Chile could have joint ventures and joint research programmes in the renewable energy sector.
He said the legislation on energy sector in Chile was dynamic and not rigid. A tariff fixation process in which the government would incentivize renewable energy was under way.
Though there were wind power projects in the country, there were only pilot projects for solar and biomass power generation. He invited Indian companies to set up projects in Chile and explore different areas for association and partnership.
The other areas of possible co-operation, according to Mr Girardi, are biotechnology, agriculture sciences, food processing, ocean water desalination and transportation.
He said more joint efforts were possible in field of science and technology and scientific research and development in various fields.
There was also scope for developing lithium-based industries, an area dominated by the Japanese.
The Ambassador of Chile in India, Mr Cristian Barros, said that a preferential trade agreement with India was being worked out. The proposed new regime would include about 1000 items, against 120 now, covering almost 90% of Chile’s offerings and 60-70% of India’s offerings.
“We can be partners, partners we do can trust in business’’, he said. Mr Barros said, “we are not afraid of distance. Distance is no problem, though there looks like to have a problem’’. He said the major business partners of Chile were China and Korea. India was not very far from them.
Mr T T Ashok, Chairman, CII Southern Region said owing to the great potential for partnership between India and Chile there could be a Comprehensive Economic Co-operation Agreement between the two countries. The agreement should cover investments, bilateral trade, education etc.
He highlighted the economic capabilities of the Southern States and its predominant industries including IT, renewable energy, especially wind and solar, textile, leather automobile and auto-components, aeronautics and biotechnology among others.
Mr Ashok said, over the years, India and Chile have developed common areas of interest in civil aviation, science and technology, research in Antartica, manufacturing and mining.
He said both the countries could use each other as stepping stone to the countries in their respective region. He said CII would work to strengthen the partnership between India and Chile.
India’s overall trade with Chile expanded from $586.65 million in 2005-06 to $1385.8 million in 2009-10. Trade growth has been led by substantial increase in imports of copper from Chile.
India’s exports to Chile have gone up by over four times since 2003-04. India’s exports to Chile primarily include inorganic chemicals, vehicle parts, iron and steel products, leather, gems and jewellery.
On the import side, items of trade are heavily concentrated in the category of ores, slag and ash, of which India imported $1.7 billion in 2007-08. $1.67 billion was copper ore, while other ores made up the remaining. India also imported about $20 million of fruits and nuts from Chile.
Mrs Sunita Shahaney, Honorary Consul of Chile in Chennai said there was good scope for India-Chile partnership in the wind power sector. New regulation and high energy prices have boosted renewable energy, especially wind energy projects in Chile. Currently there were 46 projects in development and many more under construction. The Indian companies could tap emerging opportunities by way of collaboration, partnership and supply of equipment, she said.