India slow off the block or ..? China likely to bag Israeli rail project

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 and the Red seas offers an alternative to the Suez Canal for

transcontinental trade between Europe and Asia. Also, it could facilitate exports of gas

from Israel to India and beyond. Israeli premier Benjamin Netanyahu is bullish on the

project, saying that "it has created very great interest in among the emerging powers,

China and India, and others."

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.

Already, the Asian Development Bank, which is financing the TAPI (an acronym for

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.

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)

International 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.

The IRCON has completed several landmark infrastructure projects across the globe in

21 countries, including Israel. Similarly, RITES' operational experience spans over 50

countries in Africa, South East Asia, West Asia and South America; most of its foreign

assignments are for national governments.

However, 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.