Peru is offering Indian businesses investment opportunities in agri-business, where 100,000 hectares of arable land will double in a few years due to large irrigation projects that have been tendered. Above, workers put together a pipeline during the construction of the Olmos Irrigation Project in Peru's northwestern region of Lambayeque, March 15, 2013. (Photo: Enrique Castro-Mendivil / Reuters)
Peru seeks investment from India to resurrect its infra sector
by Huma Siddiqui
Peru has sought investment from India to resurrect its infrastructure sector under a public-private partnership (PPP) model. The Latin American country is targeting $80-billion investment to bolster the sector and wants Indian companies to join hands with local entities there to develop rail, metro, roads, port, airport, telecommunications and energy projects under a joint venture route.
"There are lot of opportunities in Peru for Indian companies. We are rich in natural resources but need to improve our infrastructure to maximise the gains. A lot of projects are being planned under a PPP model and we would welcome Indian companies willing to invest under our initiative," Carlos Herrera, president of Pro Investment, Peru, told FE in an exclusive interview.
Herrera, who was here for the recently concluded two-day India-LAC conclave, said: “Peru has studied PPP initiatives in India and wants that these good practices be replicated in the country through partnerships with local companies.”
It is in this regard that it is willing to offer construction of two metro lines worth $ 5-6 billion and a mono rail project in the south of the country to Indian entities. It also wants to partner with India on a project for hydraulic works for drinking water. In the last 24 months, Peru has awarded more than $12 billion worth of projects under the PPP route.
Moreover, partnership is also being explored in the development of power projects, especially in the renewable energy space, where it is planning to set up 500,000 solar panels to take power to the remotest corners of the country. Peru also needs to add 600 mw of power capacity each year for the next five years, presenting big opportunities for companies like NTPC, NHPC, Tata Power and Reliance to set up new projects.
The cooperation will not only be in PPP projects in the infrastructure sector but the country is also offering Indian businesses investment opportunities in agri-business, where 100,000 hectares of arable land will double in a few years due to large irrigation projects that have been tendered.
According to Herrera, "Peru is blessed by its geographical location and its different climates that allow the development of agricultural activities intensively throughout the year, some even up to two crops per year (which does not happen in India)”.
The official said the Peruvian potential will grow much in 2025, when there will be 400,000 new arable acres in the country due to the implementation
