KUALA LUMPUR, Dec 2 (Bernama) -- India's Minister of State for Commerceand Industry Satyabrata Mookherjee on Tuesday said that India believes itstill has a chance to get the electrified double-tracking railway projectlinking Ipoh with Padang Besar and Seremban with Johor Baharu.

He said that Malaysia has yet to make a final decision on themulti-billion ringgit project.

"I understand it is still under consideration. I was told that the(Malaysian) Cabinet might consider this matter further, he told reportersat the "Incredible India 2003" business forum here today where PrimeMinister Datuk Seri Abdullah Ahmad Badawi had earlier delivered a keynoteaddress.

The Malaysian government had tentatively picked two contractors from China(China Railway Engineering Corporation) and India (Ircon International)for the project as part of an oil palm barter trade.

The two companies had submitted a combined bid worth a staggering RM42billion to complete the project. They subsequently lowered their demandsto under RM20 billion following the emergence of a rival bid.

The CREC-Ircon consortium was given a letter of intent (LOI) but theproject was awarded to a MMC-Gamuda consortium on October 22 this year.

The MMC-Gamuda consortium thereafter offered Ircon and CREC to besub-contractors. But it was turned down by Ircon and CREC.

Abdullah had said on November 19, 2003, that the government has given aletter of award to the MMC-Gamuda consortium to undertake the RM14.5billion rail double tracking project.

However, he said that the details of the project were still being workedout and a final agreement has not been signed between the government andthe consortium.

Mookherjee said: "We are very hopeful (of getting the railway contract).We have a very good track record and I don't see why we should not get apart of the business."

"As far as India is concerned, it is not finalised yet (and) it is stillunder consideration," he said.

"I don't see any controversy. It is for the government of Malaysia todecide. And I am sure they will choose the right party."

As for the timeframe when this will be decided, he said: "I don't know nowreally. It is for them (Malaysian government) to decide."

Mookherjee said there was no question of any backlash over the award ofthe contract if it was given to Malaysian companies.

Asked whether the export of palm oil to India would be affected by theoutcome, he said: "No, I don't think so. In fact, I think it wouldincrease."

Asked what would happen if Malaysian companies were awarded the contract,he said that "we look for the future to have good contracts, its anongoing process.

The relationship between India and Malaysia would grow further, he said.

-- BERNAMA