[Federal Register Volume 76, Number 247 (Friday, December 23, 2011)]
[Notices]
[Pages 80338-80342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32970]
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UNITED STATES DEPARTMENT OF COMMERCE
International Trade Administration
Secretarial India Infrastructure Business Development Mission,
March 25-30, 2012
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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SUMMARY: Secretary of Commerce John Bryson will lead a senior-level
business development trade mission to Mumbai, Jaipur and New Delhi,
India, March 25-30, 2012. The overall focus of the trip will be
commercial opportunities for U.S. companies, including joint ventures
and export opportunities. In each city participants will have a market
briefings followed by one-on-one appointments with potential buyers/
partners and meetings with high level government officials.
Mission Description
The focus of the mission is to promote U.S. exports to India and
discuss trade policy issues with respect to India's goal of investing
$1 trillion in infrastructure development during the next five years.
The mission will recruit companies from the following sectors: project
management and engineering services (including architecture and
design), transportation (including road/highways, rail, airports and
intelligent transportation systems), and energy (including
distribution, transmission and smart grid).
The mission supports President Obama's National Export Initiative
(NEI) and his goal of doubling U.S. exports by 2015 to strengthen the
U.S. economy and U.S. competitiveness through meaningful job creation.
It also supports the International Trade Administration's Growth in
Emerging Metropolitan Sectors (GEMS) initiative. The mission will help
U.S. companies already doing business in India increase their current
level of exports and deepen their business interests. The mission will
also target experienced U.S. exporters who have yet to penetrate the
Indian market. Participating firms will gain market information, make
business and government contacts, solidify business strategies, and/or
advance specific projects. In each of the above sectors, U.S. companies
will meet with prescreened potential partners, agents, distributors,
representatives, and licensees. The agenda will also include meetings
with high-level national, regional and local government officials,
networking opportunities, country briefings, and seminars.
The delegation will be composed of 20-25 U.S. firms representing
the mission's target sectors. Representatives of the U.S. Trade and
Development Agency (USTDA), the Export-Import Bank of the United States
(Ex-Im) and the Overseas Private Investment Corporation (OPIC) will be
invited to participate to provide information and counseling on their
programs, as they relate to the Indian market.
Commercial Setting
India is one of the world's fastest growing economies and it
presents exciting opportunities for U.S. companies that offer products
and services that help it meet its rapidly expanding infrastructure
needs. India is seeking to invest $1 trillion in its infrastructure
during the 12th Five-Year Plan (2012-2017) and is looking for private
sector participation to fund half of this massive expansion through the
Public-Private Partnership (PPP) model. The rapid growth of the Indian
economy (averaging 8% over the past 10 years) has created a pressing
need for infrastructure development and the country needs significant
outside expertise to meet its ambitious targets. U.S. industry is well
qualified to supply the kinds of architectural, design and engineering
services and project management skills needed to successfully tackle
major projects, including such groundbreaking projects as the Delhi-
Mumbai Industrial Corridor (DMIC). U.S. technologies are also well
positioned to rationalize energy use and production to support new
industrial zones as they are built in this chronically energy deficit
country.
Industry Focus
Project Management and Engineering Services (including Architecture
and Design): As Indian developers expand their capabilities and
construct and connect new industrial facilities, foreign firms often
play a major role in design, construction, engineering and management
of these signature projects. Major upcoming opportunities for U.S.
firms include the seven technology townships associated with the
development of the Delhi Mumbai Industrial Corridor (DMIC).
The Indian architecture/construction industry is an integral part
of the
[[Page 80339]]
economy and a conduit for a substantial part of its development
investment. The sector is poised for additional growth due to the dual
trends of industrialization and urbanization, and the rising
expectations of its citizens for an improved standard of living as a
result of economic development.
The profession and practice of architecture, design and project
management in India has undergone a complete transformation in recent
years. The booming economy and growing middle class has prompted
developers to bring in foreign architects to design everything from
airports to residential and commercial building and resorts. Foreign
architects have a proven track record and have helped bring about a
transformation in the way projects are designed and built. They have
paired up with Indian firms who have the expertise on the ground to
execute projects.
Transportation (Road/Highway, Railways and Airports) Road/Highways:
With a total of 3.14 million kilometers of roads, India has the 2nd
largest road system in the world only after the U.S. The National
(Interstate) Highways constitute 70,000 kilometers of roads and India
intends to double this network in the next 5 years. Additionally, it
also intends to increase the overall road network to 5 million
kilometers in the next decade, connecting all parts of the country with
each other.
The Government of India's Planning Commission recently estimated
that India will mobilize over $42 billion on spending for roads and
related infrastructure over the next several years. These funds are to
be utilized to:
Upgrade and expand the state highway network in the
different states of India (to be funded by the Asian Development Bank);
The Municipal Corporation of Delhi plans to spend $1.24
billion for upgrading the City of Delhi's roads and infrastructure as
are other big cities;
National Highway projects worth approximately $24.65
billion will be executed in the country connecting the freight
corridors running from North-South and East-West to the interiors;
Set up related infrastructure--toll booths, warehousing
facilities, connector and feeder lanes, etc. to the highway systems.
The Government of India is also formulating regulatory changes to
the awarding process and concession agreements to attract more
participation from private and foreign developers.
Railways: A lifeline to the nation, Indian Railways has the 2nd
largest railroad network in the world and is the largest employer in
India today. Indian Railways has embarked upon a massive restructuring
and expansion program over the next decade to modernize the existing
network and add new lines. It's estimated that in the 12th five year
plan (2012- 2017), Indian Railways will spend about $67 billion on the
following:
Building new routes including Dedicated Freight Corridors
(DFC) with Public-Private Partnership (PPP) sub-projects envisaging
more than $7 billion investment for the North South, East West
corridors alone
Enhancing container operations
Setting up of rail side warehousing facilities
Developing logistics parks
Development of rail links to existing and new ports
Dedicated rail links for evacuation of specific industrial
items
Modernization of railway stations and systems including
rolling stock
Airports: In terms of domestic air traffic, India is the fourth
largest civil aviation market in the world behind the U.S., China and
Japan. In FY 2011, India's domestic passenger growth rate was 11
percent and Indian air traffic is expected to grow at a compound annual
growth rate of 8-10 percent over the next 20 years. Despite these
numbers, India is one of the least penetrated air markets in the world
(even lower than Sri Lanka, Pakistan and Nigeria) with 0.02 trips per
capita as compared to 0.2 of China and 2.2 in the U.S. This reflects
significant potential for future growth.
India has a total of 454 airports with the Airports Authority of
India (AAI) managing 118 of these airports. The AAI develops and
manages airports and also provides air traffic management services and
air infrastructure. Even as existing airports continue to be upgraded,
there is an urgent need for new airport infrastructure in the country.
India currently has just 89 operational airports but that number is
expected to increase to between 300 and 500 by 2030. Starting from a
relatively small base, the airport infrastructure sector in India faces
the prospect of significant expansion as the overall economy continues
to grow rapidly.
Investment opportunities of $110 billion are being envisaged up to
2020 with $80 billion in new aircraft and $30 billion in development of
airport infrastructure, according to the Investment Commission of
India. AAI plans to allocate $12 billion for airport infrastructure
development in its next five-year plan (2012-2017), a 30 percent
increase from its last five-year plan. To ensure that the development
of the sector was not restricted to the metro cities alone, the GOI
announced its plans to modernize 35 non-metro airports into world-class
entities at an estimated cost of $1.2 billion. The airports to be
modernized include airports such as Coimbatore, Tiruchi,
Thiruvananthapuram, Visakhapatnam, Port Blair, Mangalore, Agatti, and
Pune. This is in addition to the large metro airports where
modernization is either completed or in progress and also includes
commercial developments, hotels and other passenger related amenities.
The Ministry of Civil Aviation has also approved greenfield airports at
Navi Mumbai, Goa, Durgapur, Kannur, and Saras. The International Trade
Administration (ITA) has a strong history of cooperation with India on
airport infrastructure development through its participation in the
Civil Aviation Subcommittee of the U.S.-India High-Technology
Cooperation Group and the Airport Infrastructure Working Group. During
the November 16-18, 2011 U.S.-India Aviation Summit in New Delhi,
Nicole Lamb-Hale, Assistant Secretary of Commerce for Manufacturing and
Services, announced an agreement with the Indian Ministry of Civil
Aviation on facilitating U.S. participation in the development of three
regional airports, Puducherry, Tuticorin and Jharsuguda, which will be
the focus of U.S.-India efforts to promote U.S. business participation
in the development of India's civil aviation infrastructure. The U.S.-
India relationship in civil aviation is very strong and there are
significant opportunities for U.S. firms in the area of airport
development, consulting and equipment supply.
Intelligent Transportation Systems (ITS): The Indian automobile
industry manufactures over 11 million vehicles and exports about 1.5
million each year. Due to the phenomenal growth in the number of
vehicles in the country, the need to upgrade India's traffic management
systems has become pressing. With traffic speeds in cities being
reduced to a crawl during most parts of the day and accident rates
showing no sign of decreasing, the need for smoother, safer road
transport is greater than ever.
Given the vibrant Indian automobile, electronics and ICT industries
and the country's highly skilled labor force, the prospects for ITS
development and deployment in India are bright. The current market for
ITS is estimated to be $150 million and it is projected to grow at 10-
12 percent annually.
The Government of India is improving its transportation management
system through the use of intelligent
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transportation systems. Priority areas include:
Vulnerable individual protection systems.
Traffic management.
Emergency management systems.
Commercial vehicle operations.
Traffic and traveler information.
Public transport systems.
Energy (Transmission, Distribution and Smart Grid): India is the
fastest growing electricity market in the world, with demand expected
to increase by approximately 500% over the next four decades--nearly
twice the rate of China. The Indian electricity sector faces major
challenges in trying to meet the continuously expanding demand-supply
gap. As a result, the Government of India has announced plans to add
100 gigawatts of new generation capacity by 2017 through an investment
of $102 billion in power plants. An additional $102 billion investment
in the transmission and distribution sectors is also envisaged. These
initiatives will create huge opportunities for U.S. equipment
manufacturers; Build, Own, Operate/Transfer (BOT); and Engineering,
Procurement and Construction (EPC) companies to explore.
In July 2011, India announced a $132 million smart grid pilot
project on top of other major recent investments in electric grid
modernization and smart grid technologies in order to extend
electricity services to rural populations, ensure reliability in fast
growing urban areas, and enable critical resource management and energy
efficiency applications for both utilities and citizens.
The Indian electricity sector faces many challenges in trying to
meet the ever increasing demand-supply gap. Energy losses in India's
transmission and distribution sector exceed 30%, which is one of the
highest in the world. Upgrading out-of-date transmission and
distribution systems coupled with the need to reduce electricity losses
and theft is driving the deployment of smart grid technologies in
India. The real challenge in the power sector in India lies in managing
the upgrading of the transmission, distribution and metering
efficiently. In response to these challenges, India will look to
foreign technology suppliers for the following:
Advanced metering to reduce AT&C (Aggregate Technical and
Commercial) losses that are currently at high levels
Automation to measure and control the flow of power to/
from consumers on a near real-time basis and improve system reliability
Moving to a smart grid to manage loads, congestion, and
supply shortages in an intelligent manner
U.S. companies can explore the possibility of entering the Indian
smart grid market by working with Indian companies in these pilot
projects. 2012 will be an important year as the smart grid market
begins maturing in India and U.S. firms are poised to deliver world-
class smart grid solutions to Indian utilities.
Other Products and Services: The foregoing analysis of
infrastructure export opportunities in India is not intended to be
exhaustive, but illustrative of the many opportunities available to
U.S. businesses. Applications from companies selling products or
services within the scope of this mission, but not specifically
identified, will be considered and evaluated by the U.S. Department of
Commerce. Companies whose products or services do not fit the scope of
the mission may contact their local U.S. Export Assistance Center
(USEAC) to learn about other trade missions and services that may
provide more targeted export opportunities. Companies may call 1-(800)
872-8723, or email: [email protected] to obtain such information. This
information also may be found on the Web site: http://www.export.gov.
Mission Stops
New Delhi. New Delhi, India's capital, serves as the seat of the
Government of India (GOI) and the government of the National Capital
Territory of New Delhi. The city is known for its wide, tree-lined
boulevards and is home to numerous national institutions and landmarks.
The city's service sector has expanded due in part to the large skilled
English-speaking workforce that has attracted many multinational
companies. Key service industries include information technology,
telecommunications, hotels, banking, media and tourism. Most U.S.
companies, with offices in India are either headquartered in New Delhi
or have an active office in this city. U.S. trade associations, such as
the American Chamber of Commerce and the U.S. India Business Council,
as well as, Indian trade associations, representing thousands of Indian
companies, such as Confederation of Indian Industry (CII) and
Federation of Indian Chambers of Commerce and Industry (FICCI) are also
headquartered in New Delhi.
Jaipur. Jaipur, the capital of the State of Rajasthan, is a rapidly
growing and progressive region embarking upon major upgrades of its
infrastructure. Rajasthan is a leader in the production of renewable
energy through both wind and solar generation. It has recently begun
construction of a metro system and approximately 40 percent of the
Delhi-Mumbai Industrial Corridor (DMIC) which includes new satellite
industrial cities is being built adjacent to a high-speed rail freight
line connecting the two major cities. Jaipur has been identified by the
U.S. Commercial Service in India as one of the key second tier cities
in India under the `Growth in Emerging Metropolitan Sectors'' (GEMS)
program which is aimed at building commercial ties between the U.S. and
India's emerging cities and states.
Mumbai. Mumbai, located in the state of Maharashtra, is the
commercial and financial center of India. Mumbai is India's largest
city and home to almost 20 million people, and many of India's
industrial powerhouses are headquartered in the city, including Tata,
Reliance, and Mahindra all of which are very active in developing
India's physical infrastructure. Mumbai is also at the center of
India's civil engineering and architectural and design sector and U.S.
firms are eagerly seeking to partner with these distinguished and
capable firms to tap the Indian market. The region surrounding Mumbai
has emerged as an industrial hub and several major U.S. corporations
across a wide variety of sectors have established a presence in the
region. It is not an exaggeration to say that Mumbai is truly the
Gateway of India, and U.S. firms interested in doing business in India
should make a point to visit this city.
Mission Goals
The mission will demonstrate the United States' commitment to a
sustained economic partnership with India. The mission will combine
Secretarial-level policy dialogue with business development goals for
U.S. firms. The mission's purpose is to support participants as they
construct a firm foundation for future business in India and
specifically aims to:
Assist in identifying potential partners and strategies
for U.S. companies to gain access to the Indian market for
infrastructure products and services.
Provide an opportunity for participants to be present for
policy and regulatory framework discussions with Indian government
officials and private sector representatives to advance U.S. market
access interests in India.
Confirm U.S. Government support for activities of U.S.
business in India and to provide access to senior Indian government
decisionmakers.
[[Page 80341]]
Listen to the needs, suggestions and experience of
individual participants so as to shape appropriate U.S. Government
positions regarding India and U.S. business interests.
Organize private and focused events with local business
and association leaders capable of becoming partners and clients for
U.S. firms as they develop their business in India.
Assist development of competitive strategies and market
access with high level information gathering from private and public-
sector leaders.
Mission Scenario
During the Infrastructure Business Development Mission to India the
participants will:
Meet with high-level Indian government officials.
Meet with prescreened potential partners, agents,
distributors, representatives and licensees.
Meet with representatives of the U.S. and Indian Chambers
of Commerce, industry and trade associations.
Attend briefings conducted by Embassy officials on the
economic and commercial climates.
Site visit(s) to see first-hand major infrastructure
development projects.
Receptions and other business events will be organized to provide
mission participants with further opportunities to speak with local
business and government representatives, as well as U.S. business
executives living and working in the region.
Planned Timetable
Mumbai
Sunday--March 25
Arrive Mumbai.
Orientation.
Briefing from U.S. Government trade finance agencies.
Economic/market briefing by U.S. Consulate officials.
Welcome dinner.
Monday--March 26
One-on-one business meetings for the delegation.
Meetings with local government officials.
Business event/briefing with local industry
representatives.
Reception hosted by U.S. Consul General.
Tuesday--March 27
One-on-one business meetings for the delegation.
Meetings with senior Indian industry and government
officials.
Departure for Jaipur.
Jaipur, Rajasthan
Tuesday--March 27
Arrive from Mumbai.
Evening business event.
Wednesday-March 28
Site visits to infrastructure projects in Jaipur,
Rajasthan metropolitan area.
Meetings with local industry and government officials.
Departure for New Delhi.
New Delhi
Wednesday--March 28
Arrive from Jaipur.
Thursday--March 29
Economic/market briefing by U.S. Government officials.
Business event/briefing with local industry
representatives.
High-level government meetings and roundtables for
delegates.
One-on-one business meetings for the delegation.
Reception hosted by the U.S. Ambassador.
Friday--March 29
One-on-one business meetings for the delegation.
Government and industry meetings.
Wrap-up discussion and closing dinner.
Mission ends/departure.
Participation Requirements
All parties interested in participating in the Secretarial
Infrastructure Business Development Mission must complete and submit an
application package for consideration by the U.S. Department of
Commerce. All applicants will be evaluated on their ability to meet
certain conditions and best satisfy the selection criteria as outlined
below. Approximately 20-25 companies will be selected from the
applicant pool to participate in the mission.
Fees and Expenses
After a company has been selected to participate in the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The participation fee, based on 25 companies, will be
$11,000 for large firms and $9,000 for a small or medium-sized
enterprise (SME), which includes one principal representative.\1\ The
fee for each additional firm representative (large firm or SME) is
$2,000.
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\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing schedule reflects the Commercial Service's user fee
schedule that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional
information).
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Expenses for travel arrangements to and from India, lodging, some
meals, and incidentals will be the responsibility of each mission
participant.
Conditions for Participation
An applicant must submit a completed and signed mission application
and supplemental application materials, including adequate information
on the company's products and/or services, primary market objectives,
and goals for participation. If the Office of Business Liaison receives
an incomplete application, the Department of Commerce may either:
Reject the application, request additional information/clarification,
or take the lack of information into account when evaluating the
applications.
Each applicant must also:
Certify that the products and services it seeks to export
through the mission are either produced in the United States, or, if
not, marketed under the name of a U.S. firm and have at least fifty-one
percent U.S. content. In cases where the U.S. content does not exceed
fifty percent, especially where the applicant intends to pursue
investment and major project opportunities, the following factors, may
be considered in determining whether the applicant's participation in
the trade mission is in the U.S. national interest:
[cir] U.S. materials and equipment content;
[cir] U.S. labor content;
[cir] Repatriation of profits to the U.S. economy;
[cir] Potential for follow-on business that would benefit the U.S.
economy;
Certify that the export of the products and services that it
wishes to export through the mission would be in compliance with U.S.
export controls and regulations;
Certify that it has identified to the Department of Commerce
for its evaluation any business pending before the Department of
Commerce that may present the appearance of a conflict of interest;
Certify that it has identified any pending litigation
(including any administrative proceedings) to which it is a party that
involves the Department of Commerce; and
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Sign and submit an agreement that it and its affiliates (1)
have not and will not engage in the bribery of foreign officials in
connection with a company's/participant's involvement in this mission,
and (2) maintain and enforce a policy that prohibits the bribery of
foreign officials.
Selection Criteria for Participation
Selection will be based on the following criteria in decreasing
order of importance:
Consistency of company's products or services with the scope
and desired outcome of the mission's goals;
Suitability of a company's products or services to the Indian
market and the likelihood of a participating company's increased
exports to or business interests in India as a result of this mission;
Demonstrated export experience in India and/or other foreign
markets;
Prior experience in public discussions, such as through
conferences, business organizations, public/private entities, or
academic fora, on policy issues related to market access for U.S. firms
in India;
Current or pending major project participation; and
Rank/seniority of the designated company representative.
Additional factors, such as diversity of company size, type,
location, and demographics, may also be considered during the review
process.
Referrals from political organizations and any documents, including
the application, containing references to partisan political activities
(including political contributions) will be removed from an applicant's
submission and not considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.export.gov/trademissions/
) and other Internet Web sites, press releases to general and trade
media, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows. The Commerce
Department's Office of Business Liaison and the International Trade
Administration will explore and welcome outreach assistance from other
interested organizations, including other U.S. Government agencies.
Recruitment for this mission will begin immediately upon approval.
Applications can be completed on-line at the India Infrastructure
Business Development Mission Web site at http://www.export.gov/IndiaMission2012 or can be obtained by contacting the U.S. Department
of Commerce Office of Business Liaison ( (202) 482-1360 or
[email protected]).
The application deadline is Wednesday, January 25, 2012. Completed
applications should be submitted to the Office of Business Liaison.
Applications received after Wednesday, January 25, 2012 will be
considered only if space and scheduling constraints permit.
General Information and Applications: The Office of Business
Liaison, 1401 Constitution Avenue NW., Room 5062, Washington, DC 20230,
Tel: (202) 482-1360, Fax: (202) 482-4054, Email:
[email protected].
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2011-32970 Filed 12-22-11; 8:45 am]
BILLING CODE 3510-FP-P