Date:18/02/2007 URL: http://www.thehindubusinessline.com/2007/02/18/stories/2007021803600600.htm

Back Western Australia scouts for investments in IT, agri sectors

Our Bureau

Tatas urged to set up steel plant, hotels

Some details
Western Australia has 80% of the country's extensive gas reserves.
It has signed a A$25 b contract to supply LNG to China for 25 years.

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Mumbai Feb. 17 The Western Australian Premier, Mr Alan J. Carpenter, met up with officials of Tata group, Shapoorji Pallonji group and Hindalco to attract investments in the State's oil and mineral exploration, IT, biotech and agricultural research sectors.

The Premier will be meeting the Tamil Nadu Chief Minister, Mr M. Karunanidhi, and corporate officials from the South on Tuesday to discuss investment opportunities in Western Australia.

`Rich resources'

"Given the rich mineral resources in Western Australia, we want the Tatas to look into setting up a steel plant and built top class hotels. The Tatas have expressed interest and agreed to send a delegation to explore the possibilities. Similarly, Shapoorji Pallonji group was interested in IT and infrastructure projects," said Mr Carpenter, at a select news briefing.

The Premier also wanted oil companies such as BPCL, HPCL, Videocon Industries Ltd and Gujarat State Petroleum Corporation, which are all in joint venture with Australian company Olix, to ramp up investments in oil exploration.

Considered as Australia's "Energy State", Western Australia has 80 per cent of Australia's extensive gas reserves and has signed a A$25 billion contract to supply LNG to China for 25 years. When asked whether such an agreement is possible with India, Mr Carpenter said: "It depends on the interest of Indian companies. However, I'm not sure whether such long term contracts can be worked out, what with LNG prices showing a steady rise. Having said that, it can always be negotiated for mutual benefit."

Other avenues

LNG production in Western Australia is expected to triple in the next 10 years, while production of iron ore is likely to double from 200 million tonnes (mt) per year to 400 mt per year by 2016, he said.

Gold exports in 2005-06 to India amounted to approximately A$2.7 billion and accounts for approximately 20 per cent of India's gold imports.

The Oswal Group has invested A$700 million in a liquefied Ammonium plant in Western Australia, while Hindalco owns a copper mine and a port infrastructure facility in the state.

Mr Carpenter will also be visiting Hyderabad and Bangalore to scout for investments in IT, bio-tech and agricultural research.