Macedonia woos Indian investors for power projects October 8, 2012Posted by Yilan in India, Macedonia.
Tags: agriculture, Europe, India, infrastructure, IT and automotive, Macedonia, pharmaceuticals, Real Estate, Zoran Stavreski
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Republic of Macedonia, a fast-growing emerging economy in the southeastern part of Europe, is exploring opportunities to attract investments from India for power projects, and in sectors including real estate, agriculture, infrastructure, pharmaceuticals, IT and automotive, according to Zoran Stavreski, vice prime minister and minister of finance.
The country, which has free-trade agreements to provide access to markets in 41 countries with over 650 million consumers, is looking at investments for two upcoming hydro power plants with a total capacity of 650-Mw involving an investment of euro 700 million.
Stating that Macedonia is planning to completely liberalise its energy market by 2015, Stavreski said the country was looking at privatising up to 49% of its state electricity generation company for around $1.2 billion.
Macedonia, which attracts anywhere between 4 and 8% foreign direct investment (FDI) of its gross domestic product (GDP) every year, will offer a single-window for administrative services, besides low real estate costs and utilities (10-15 euro per square metre in city centre and two to three euro in surroundings on long-term lease of up to 99 years), he said.
The country’s Constitution guarantees fair treatment of foreign investors, allowing 100% foreign ownership of a company, Stavreski said, adding that they had initiated the procedure of signing a double-taxation treaty with India, which was likely to be closed by January 2013.
“This is the second time that we are presenting opportunities for India this year, and over 20 companies from India have already visited us. While automotive components manufacturer Motherson had already purchased land in Macedonia, we are in active discussion with Indian car manufacturers to set up shop in the country. An Indian company’s investments in Macedonia will also be announced in the next two to three months,” he said.
Tags: Greece, India
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Prominent economists in the country have said that the implications of the debt crisis in the Greek economy on the Indian economy will be mainly on the financial markets and is unlikely to affect the economic growth.
The Kaushik Basu, Chief Economic Adviser of the Ministry of Finance said that the impact of the debt crisis in the country will result in capital flows looking for safe heavens and slight drop in exports.
He continued that only 0.05% of India’s exports are to Greece and the banking sector have very limited exposure to the troubled country. The measure taken by the European Union and the IMF may control the crisis in the country. He added that another grim scenario could be that the whole Europe in sucked in to another crisis.
Another economist, Pranob Sen indicated that the situation in Europe could lead to softening of the interest rates. He expects the economic growth in the country to remain stable.
The chief economist at Crisil, DK Joshi said that the implications on the Indian economy will depend on how the situation is dealt with. The package has stopped the crisis from spreading so far. He added that it is highly unlikely that the crisis will spread to countries outside Europe.
Meanwhile, the German government has approved the proposed $1 trillion safety net for controlling the uncertainty for the Euro after there were some concerns that the crisis could affect the economic recovery.
The finance ministers from EU countries met in Brussels to put in place tougher sanctions for states that break the budget rules.