December 3 2003 - INDIA’S Minister of State for Commerce and Industryyesterday denied any trade backlash from the South Asian giant in responseto Malaysia’s decision to award the double-tracking railway project tolocal companies.

There’s no controversy ... no, I don’t think there will be any backlash ifIndia doesn’t get it, Satyabrata Mookherjee told reporters on thesidelines of the Incredible India 2003 trade exhibition and businessforum.

He was asked about possible reactions from India after Indian RailwayConstruction Co (Ircon), earlier picked by Malaysian Government to takepart in the double-tracking railway project from Johor Baru to PadangBesar, was sidelined in favour of Malaysian Mining Corp Bhd (MMC) andGamuda Bhd.

Along with Ircon, the Government had also picked China Railway EngineeringCorp (CREC) and issued letters of intent to both in mid-2002 before givingthe contract to MMC-Gamuda, which submitted a lower bid.

Both the Indian and Chinese governments were to be paid with crude palmoil under a counter-trade agreement.

Asked if he thought Malaysia’s palm oil exports to India would beaffected, Satyabrata said No.

Ircon now stands to undertake 70 per cent of the works for the PadangBesar-Ipoh stretch (northern grid) while CREC might get 70 per cent of theSeremban-Johor Baru track (southern grid).

MMC-Gamuda had made these offers to the two foreign companies for RM3.36billion to Ircon and RM2.3 billion to CREC.

It’s for the Government of Malaysia to decide and I’m sure they’ll choosethe right party. If this doesn’t work out, we’ll just look forward tohaving other contracts in the future, Satyabrata said.

Works Minister Datuk Seri S. Samy Vellu, when asked about thedouble-tracking railway project, said the Government’s decision inawarding the contract to MMC-Gamuda was final.

What’s being discussed now with the Indian and Chinese companies is theprice for the portions of the works, he said. The remaining 30 per cent inthe northern and southern grids respectively would be given to localcontractors, he said.

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