NEW DELHI: China’s attempt to sink in its economic might in many countries with rail and road projects through “One Belt One Road (OBOR)” initiative appears to have dulled Indian interests to seek Chinese investments in the Railways. After initial euphoria, which included awarding feasibility study works to Chinese, the government has developed cold feet apparently because of China going ahead with the “China-Pakistan Economic Corridor (CPEC)” in the Pakistan occupied Kashmir (PoK) areas.
“There is no more excitement within the government to scout for the Chinese assistance in developing semi-high speed or high speed rail system in the country. There is a sense within the government that India could develop its own variant,” said a senior official of the NITI Aayog.
Incidentally, the Ministry of Railways had asked a Chinese firm to carry out pre-feasibility study of the Mysore-Bengaluru-Chennai route. The report was submitted last year and is now lying with the Railway Board. China had also evinced interests to build the New Delhi-Chennai high speed rail system.
“Safety is the government’s priority. We are taking Japanese assistance to build the Ahmedabad-Mumbai high speed rail corridor because of the zero accident record of Japan, besides the investment coming as an unmatchable soft loan. We don’t see China matching Japan on the twin aspects,” added the official.
When asked if the government is going slow on China for infrastructure investment on account of the Chinese belligerence to go ahead with the CPEC, the official said that “the issue pertains to the Ministry of External Affairs, but the fact of the matter is that we have our own concerns due to which there is no enthusiasm to give China the same status as of Japan as our partner in building critical rail infrastructure”.
China and Japan have maintained frosty relations since World War II and the Nanking massacre. However, India’s ties with Japan have been good owing to Prime Minister Narendra Modi and Shinzo Abe’s good relations.
Incidentally, India had stayed away from the much-hyped conclave in Beijing on OBOR this month even while most of the South Asian neighbours had attended the event. When specifically asked if there is a view within the government on the issue of OBOR, a top NITI Aayog official said, “We believe that the project is to utilise the excess capital and productions in China to gain markets for its goods.
Besides the issue of CPEC, the government has come across numerous complaints from the industry about inferior quality of Chinese machineries and goods. The appetite for China within the domestic industry as well as government is on decline.”
Why Japan?
Japanese assistance is taken to build the Ahmedabad-Mumbai high speed rail corridor because of Japan’s zero accident record. Also, investment is coming as an unmatchable soft loan.