TBEA evolution: how China PV companies into India

Polaris solar PV net news: September 17-19th President XI Jinping of China on India launched a 3-day visit, had been reached between the two countries in industry, trade, investment, finance, infrastructure and other areas of more than more than 10 agreements, India media scream “-China enters India”.

In dozens of deals, investment in industrial parks is the top priority. China declared in India Gujarat and Maharashtra, two industrial parks, and within the next 5 years, the fight for India investment in industry and infrastructure development projects to $ 20 billion.

In terms of economic and trade cooperation, and India as a fast developing country in the world, is arealready in Asia’s third largest economy, bilateral economic and trade cooperation has great potential. Nearly 3 years, China has become India’s biggest trading partner and India is China’s largest trading partner in South Asia. Data show that bilateral trade reached 65.471 billion US dollars in 2013. First three quarters of this year, bilateral trade volume has exceeded US $ 50 billion at the end of June 2014, China India direct investment totaled $ 1.08 billion, project contracts totaled $ 63.3 billion.

India senior diplomats Kishan ˙ Rana told Xinhua in an interview, said that economies of the two countries have similarities. Now bilateral economic and trade ties are based on small and medium sized merchants for small transactions, blindness and volatility, so that bilateral economic and trade cooperation in a large space. The learned President visit to deepen the mutual trust, MODI also greatly preferred by Chinese technology, capital power India development, which will bring real impetus to bilateral economic and trade cooperation.

Integration of India

MODI after the ruling, will attract foreign capital as pushing India economy the best way. Prior to this, his greatest achievement was when the Gujarat Chief Minister, vigorously attracting foreign investment in the territory of the State to establish industrial parks. Japan, European and Chinese enterprises have set up camp here.

On September 17, the Gujarat state capital Ahmedabad. Mr XI and Mr MODI’s presence, as the principal financier and leading party of China Development Bank, with representatives of the Gujarat industrial development authority signed a memorandum of understanding to invest in electric power industry garden in Gujarat (MOU).

Under the agreement, the Gujarat Government will supply land, tax and administrative approval to TBEA and other Chinese companies to provide maximum convenience, State Development Bank of China will provide preferential loans for the industrial park. The Gujarat industrial development Park in the deal was led by Xinjiang tebian electrical equipment, and equipment manufacturing industrial park.

Tebian electric decided in 2007 to enter the India market, simply because India electricity supply shortage. Even now, all India electricity a year also lags far behind that of China, which is comparable to the number of people in both countries. Second, saw India human capital advantage. According to the World Bank data shows that India per capita wage levels less than half that of China.

TBEA is India an existing industrial park, China’s first, is also the most successful company. Reporters at the Park, a garden-like factory, new factories, residence dormitories, tennis courts and basketball courts, canteen, clean and tidy, as national high-tech industrial park. Over 90% over more than 500 employees are locals, more than half of them are university graduates and have received technical training in China. Permanent Mission of dozens of Chinese experts, engineers and technicians, and India join staff for live work.

Tebian Electric Corporation, Chairman, Party Secretary of Zhang Xin told Xinhua in an interview that, tebian electric over the next few years will be in Baroda in second and third-phase construction of the industrial park, focusing on solar power generation projects and renewable energy development project, latest technology into China, gave thousands of India create employment opportunities for youth. “In addition to the construction outside, TBEA will also develop local anti-poverty work, including to the nearby poor rural wells, through various forms of assistance to local development of education on health, and become a real India enterprise. “

India a heterogeneous

With European, American, Japanese and Korean companies in India compared to deep market for decades, Chinese companies in India is still a new market, farming more than 15 companies are even scarcer. India left the impression has always been manufacturing behind investment potential. In practice, however, India investment was fraught with risk and uncertainty, even those who entered India also paid for tuition and was able to grow and develop.

TBEA enters at the beginning, has set up an Office in New Delhi, India markets a great deal of research and market analysis. India national level, backward infrastructure, different State for businesses and foreign taxes, Government rent is quite severe and police departments, all foreign investment in India’s barrier.

However, were still under Narendra Modi of Gujarat is far from unique, and not only from the State’s business environment ranking India first in State and local Government welcomes foreign investment, and administrative efficiency was much higher than other States. In terms of infrastructure, and Gujarat also has India best quality highways, electricity and water supply to meet business requirements. Itself still has a port, just 400 km from the port of Mumbai, Maharashtra, and location excellent.

Tebian electric energy (India) limited told Xinhua Chen Zhijin, General Manager, said in an interview: “from approval to take to the construction, commissioning, operation, Gujarat Government provides to facilitate as much as possible. Kupang officials will really be for corporate and business services, which in India, in fact, more or less heterogeneous. “

Of course, industrial park finally India was adopted by the Government as a result of the Chinese Government continue to promote. Chen Zhijin, said before being settled in local, Chinese Ambassador to India has done a lot to help the work of the Embassy, first at Government level interaction, interviewed by Embassy officials and departments in charge of business in Gujarat, after determination of cooperation, the local government approved, TBEA locally to complete the registration, purchase of land, construction and other processes.

In August 2012, tebian Electric Industrial Park started project invested $ 150 million over a period of 16 months, and built a power transmission and transformation of China and India’s largest investment projects in the field.

Investment is not easy to

TBEA experience offers one possible solution, that is, rely on national Governments and embassies and consulates to promote. “If only the enterprise solo, India special political operation mode, may lead to many potential difficulties and threats. “Chen Zhijin said.

In fact, the industrial park construction process has not been smooth. According to Chen Zhijin description, purchase of land and construction have encountered unprecedented difficulties. Only the purchase of land alone gets into protracted negotiations with land owners, take a year to complete the purchase.

In India, land is privately owned, and even provided a piece of land in many cities have lived continuously for more than 20 years of households on land ownership, the developers bought land from the landowners, pain, because the Government dare not interfere in future elections, “offended” cannot afford “the landlord voters”.

Chen Zhijin, said to reporters, in India to buy, there are three main ways: one is the Government, location is not perfect, of course; the second is private land, since India populated developer reached an agreement with tenants on land difficult; third, intermediary agency lands, which contain hidden costs, costs are high. On balance, TBEA has identified a piece of private land for agriculture.

TBEA-effort, find local agents that helped “the bargain”, purchased in experienced foreign and domestic enterprises in the local industry will encounter difficulties, construction of the industrial park. On June 28, 2014, invested by TBEA tebian electric green energy industrial park for the construction of phase one project tebian electric energy (India) limited exchange of 1.2 million volts, DC positive and negative 1 million volts high voltage transformers and development site was completed, there are now 24 765,000-volt high-voltage product line, service in India national main grid construction.

For Chinese companies in India encounter some difficulties, China’s Consul General in Mumbai, Liu Youfa had to finance national weekly reporter concluded, for reasons of national security and global strategic considerations, for a long time all India Government implemented a discriminatory policy and capital for Chinese enterprises. First, on the corporate approval added “safety valve”, the second is the differential treatment in the bid for the project, three is extended for no reason on the visa processing time is related to four agencies can’t be based on contracts issued by Chinese engineers and technicians work permit five, there is a structural phenomenon of rent-seeking.

According to India’s system of tax on State Governments have great discretion, they viewed enterprises, especially foreign-funded enterprises “money tree”, and some will try to heckle from taxation, land and approving permits, it is investment in India “unspoken rules”. Because of this, India’s business environment has been ranked. Some foreign-funded enterprises locked into this term cannot be profitable, or even withdrawal of foreign capital in recent years India’s new trends.

Of these government level difficulty led some Chinese companies can only rely on a local network of contacts, particularly in Government and business contacts in order to “when in Rome” to find out the grey areas, with some success.

Even has special variable electrician in India success of precedent, Chen Zhijin still think, India is a relative “mystery” of market, for China enterprise is strange, looks “potential unlimited” actually full “reef”, India market both contains Western operations of rules and process, also some government institutions found rent of grey Strip, and India local special of religious and national character, are needs investors more caution.

Original title: enterprise integration into India

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