France’s Minister for Finance and Public Accounts Michel Sapin on Monday said French companies have been investing billions in India and he expects that they will invest over $10 billion in the next five years.
“Over the last five years, French companies invested more than $1 billion per year and we estimate that they will continue to invest at least $10 billion in next five years,” Sapin said at the India-France business session organised by industry body Ficci.
French companies represent 10 per cent of solar capacity installed in India and by 2020-22, they could add additional capacities, he said.
Sapin said France is the third-biggest foreign investor in India with an investment stock of $20 billion and there are more than 400 French companies present in India with a consolidated turnover of over $20 billion.
“The majority of these investments are meant for the industrial sector. This makes France a major player in Prime Minister Narendra Modi’s Make in India programme. This complementarity can also been seen in the context of other programmes of the Indian government,” Sapin said. The minister added that France has directed French Development Agency to earmark 60 per cent of total financial outlay to India. “The economic presence of France in India goes back to a long time and is very diverse. This expression of interest in India did not wait for Indian GDP to supersede that of China,” Sapin said.
The agency operates in 70 countries and provides finance for development. In 2014, it committed euro 8.1 billion across the globe for various projects. He met Finance Minister Arun Jaitley this morning and has invited him to visit France for an annual economic dialogue between the two countries. “In France, Indian companies are too few in numbers though France is one of the biggest recipients of FDI in the world. I count all French companies in India to act as ambassador for our country and invite their counterparts to discover in France what they are missing,” Sapin stressed.
Moreover, France will help modernise Ambala and Ludhiana railway stations and its top company Alstom will manufacture 800 electric locomotives of horse power double than the existing ones in India, involving foreign investment of Rs 1300 crore, according to agreements signed here. The two significant pacts, marking stepped up cooperation in the rail sector, were signed after talks between Prime Minister Narendra Modi and French President Francois Hollande.
Alstom and Indian Railways signed a ‘shareholding agreement’ for production of 800 electric locomotives at Madhepura in Bihar. As per the agreement, the Madhepura factory will produce 800 electric locomotives with horse power of 12,000 each over a period of 11 years. The existing strength of electric locomotives is 6,000 horse power (HP). The project would involve foreign investment of Rs 1300 crore, considered to be substantial in rail sector. Alstom will be responsible for setting of the factory, manufacturing of the locomotives as well as maintenance.
Railways had decided in November to award the contract to Alstom for Madhepura electric locomotive project. Production of locomotives with 12,000 horse power would be a quantum leap over the existing 6000 HP locomotives used for freight operations. Under another agreement, France will extend its expertise to modernise Ambala and Ludhiana stations.
An expert team from France will come and study these two stations and accordingly a roadmap will be concretised based on its report, said a senior Railway Ministry official.
French Development Agency to Help develop three Smart Cities in India
Chandigarh, Puducherry and Nagpur will be developed as ‘Smart Cities’ with the help of France which has affirmed its commitment to India’s ambitious plans for clean and sustainable development. In this regard, French Development Agency has signed memoranda of understanding with the Union Territory of Chandigarh, Union Territory of Puducherry and the Maharashtra government (for Nagpur). A joint statement issued here on Monday after talks between Prime Minister Narendra Modi and French President Francois Hollande said “the two leaders reaffirmed their commitment to cooperate towards clean and sustainable development and reaffirmed their valuable partnership in India’s ambitious plans to develop Smart Cities.