UAE entities to invest up to $7b in India-UAE food corridor

UAE entities are expected to invest up to $7 billion in India’s food sector in the next three years as part of the UAE-India food corridor project that aims to secure the UAE’s food security, an Indian minister told Emirates News Agency, WAM.

These entities, coordinated by Dubai-based Emaar Group, plan to invest up to $5 billion in mega food parks and similar facilities in various Indian cities, and up to $2 billion in contract farming, sourcing of agro commodities and related infrastructure, Piyush Goyal, Indian Minister of Railways and Minister of Commerce and Industry, has revealed.

Emaar in a statement issued to WAM on Tuesday said, “Emaar Group is coordinating with the Government of India in respect of the investment relating to food security in the UAE. The investment will be made by other UAE entities, the details of which will be declared at a later stage.” It was reported earlier that the idea of the joint food corridor for the UAE’s food security was inspired by India’s strategic petroleum reserve in Padur in south India, in partnership with Abu Dhabi National Oil Company, Adnoc. Likewise, the UAE could have a food reserve in India.

“They UAE entities have expressed their interest to invest up to US$5 billion in mega food parks, logistics and warehouse hubs, fruits and vegetable hubs in various Indian cities, which would create 200,000 jobs across India,” said the minister who was in the UAE earlier this week on an official visit.

 The proposed projects are in various cities, such as mega food parks in Kutch in western state of Gujarat and Aurangabad in western state of Maharashtra, Goyal said.

A food park in Pawarkheda in central state of Madhya Pradesh, logistics and warehouse hub in Itarsi in Madhya Pradesh, fruits and vegetables hub in Nashik and warehousing hub in Bhiwandi in Maharashtra are other projects, he explained.

The UAE entities plan to make an indicative investment up to US$2 billion in contract farming, sourcing of several agro commodities, setting up of food parks and other related infrastructure for food processing, the minister said.

 They are considering western Indian states of Gujarat and Maharashtra for the proposed projects and the possibility of eight food parks is being currently evaluated, Goyal revealed.

The food export possibilities to the UAE and wider region are explored, which will turn into a win-win situation for both India and UAE, he said.

Reports in 2018 said that India had suggested to the UAE leadership it could be a partner in the UAE’s food security.

Although India grows enough food for its 1.3 billion people, 30 percent of that food is wasted for lack of appropriate infrastructure for storage, processing and transportation, which could be built by the UAE’s investments.

The UAE can buy the food produced by the project at a cheaper price while Indian farmers will get a comparatively better price for their crops.

Seventeen UAE companies have confirmed their investment in India’s infrastructure sector in the last 12 months, an Indian minister has said.

Piyush Goyal said that since the 6th meeting of the UAE-India High Level Joint Task Force on Investments that was held in Mumbai in October 2018, the Indian Government has been assisting over 200 UAE-based businesses to obtain licenses and approvals.

This was made possible thanks to the fast-track mechanism and procedures put in place by the government, he said.

“The UAE has committed $75 billion investments in India’s infrastructure sector. Now it is up to all of us to make that commitment a reality,” the minister emphasised.

The minister noted that while some UAE companies might be dealing with some “concerns and pending issues,” “all efforts are being made to resolve remaining issues by the specialised Joint Working Groups formed for this purpose.”

He led a delegation of senior representatives from the Indian Government to discuss investment opportunities for the UAE in several important sectors, including oil and gas, civil aviation, construction, food processing, renewable energy, infrastructure and shipping.

The Joint Task Force has been an effective platform for promoting, facilitating and expanding investments between India and the UAE over the years, the Indian minister said.

Regarding the cooperation in the railway sector, he said India was keen to bring its 166 years experience in railways to the UAE. “We have recently bid a large contract for Etihad Rail. We have been shortlisted and now waiting for the final outcome.”

“Even otherwise, we are keen to work with the UAE. I hope both Indian Railways and Etihad Rail can partner together to offer the best services in the UAE,” the minister explained.

There are also ongoing discussions in capacity building and joint research and development efforts in the railway sector, he added.

WAM