Rakia to aid industrialisation in IndonesiaFebruary 19th, 2008 - 4:47 pm ICT by admin
Mumbai, Feb 19 (IANS) United Arab Emirates (UAE) based Ras Al Khaimah Investment Authority (Rakia) and its subsidiary RAK Minerals and Metals Investments (RMMI) said Tuesday that they will develop industrial and biotechnology parks in South Sumatra province of Indonesia, a move expected to supply minerals and metals to India. Rakia and RMMI have signed a memorandum of understanding (MoU) with South Sumatra Province to develop these parks in Banyuasin.
According to an official release, the agreement covers the entire mining-to-export chain of coal industry focussed on developing and supporting related industries.
The release said it is expected to benefit India’s coal sector and other industrial minerals and metals sector.
Madhu Koneru, managing director of RMMI, said: “The MoU is in line with our plan to invest more than $1 billion in 2008 towards development of resources and infrastructure projects in Asia and Africa, including India.
“On its completion, the infrastructure will become one of biggest suppliers of minerals and metals to India. I foresee Sumatra attracting huge investments from India to set up industries on this island.”
The MoU includes building of an industrial park for metals refining, smelting and metal-based fabrication industries, biotechnology parks, palm, rubber and other agro-based industries, captive power plants and supporting infrastructure.
The MoU signed by Rakia officials and Governor of South Sumatra Province Syahrial Oesman encompasses developing integrated industrial and logistics infrastructure including rail transport corridor and a seaport to handle bulk and container cargoes.
Oesman said: “Rakia’s mandate is to create robust infrastructure to support export-import and inter-island activities, so that the natural resources from South Sumatra Province can compete efficiently and effectively.”
Under the MoU, the government of South Sumatra Province will provide sufficient land and fast-track the approval and licensing process to build new port, industrial parks, power plant and residence and leisure facilities.
The release added that the South Sumatra province government would facilitate RMMI to get licences and off-take agreement of natural resources like coal and metallic ores to support the raw material requirement of local industries and the planned power plant.
The province of South Sumatra, which holds the largest resources of coal in Indonesia, aims to capitalise on its strategic location and get the full benefits from its natural resources and agriculture-based economy to induce social and economic growth in the region by attracting investments in the minerals and ore processing industry, agro-businesses, biotechnology industries and oil and gas refineries.
Moreover, elaborating on the agreement, the release stated that the development of a freight corridor and port infrastructure would allow an efficient export route of thermal coal and other natural resources to India and other Asian and West Asian markets.
Tags: al khaimah, banyuasin, captive power plants, cargoes, coal industry, coal sector, fabrication industries, industrial minerals, industrialisation, infrastructure projects, integrated industrial, inter island, investment authority, logistics infrastructure, memorandum of understanding, rail transport, robust infrastructure, south sumatra province, transport corridor, united arab emirates