A 45-member business delegation from CII, Ficci and Assocham accompanying President Pratibha Patil on her state visit to Laos and Cambodia made a strong pitch for Indian investment in the natural resources industry of Laos at an India-Laos business forum meeting on Monday. The tiny, landlocked member of Asean has massive underexplored potential in the mining of gold, copper, iron ore and bauxite, and plentiful forest resources. The Tata Group has applied for a mining exploration licence in iron ore but is waiting for approval from the Laos government.
Earlier, the business delegation had met President Patil and requested the government?s assistance, particularly in obtaining mining licences. Speaking to the press on the sidelines of the India-Laos business forum, Sandipan Chakravortty, managing director, Tata Steel Distribution and Processing and leader of the business delegation said, ?The government of India has to lend support. Competition here is not with domestic firms but with firms from China and Vietnam.?
The Laos government has already given out 146 mining exploration licences, but mostly to Chinese and Vietnamese firms. No new licences, however, have been issued in the last year. So far, the Aditya Birla Group is the only Indian company with a significant presence in Laos, with a committed investment of $350 million in eucalyptus plantations and pulp processing.
Speaking at the forum, President Pratibha Patil called upon Indian businessmen to consider the opportunities available and to further explore the Laos market. She said Laos commerce and industry minister Nam Viyaket had assured that he would look into the concerns expressed by the Indian business delegation.