KANDLA TO CHABAHAR AND ONWARDS TO BIG MARKETS

Prime Minister Narendra Modi, said on Monday that Kandla port in Gujarat will soon be connected with Iran’s Chabahar port, which will give a boost to India’s international trade and place the Indian port firmly on the global map. India Ports Global Pvt. Ltd (IPGPL) will develop and operate the Chabahar port. IPGPL is in the process of setting up two container berths and three multi-cargo berths there. Chabahar Port in Iran, which is located to the west of Gwadar Port in Pakistan is being developed and used jointly with Iran. And based on the Chabahar Port, we are also making our very own roadway and railway (in Iran) to join Iran and Afghanistan, without really having to join or touch Pakistan

Chabahar port allows India to have access to major Afghanistan cities like Kabul, Herat, Mazar-e-Sharif, Kandhar. which directly allows Afghanistan to be less dependent on Pakistan (a troublesome neighbour) for Indian product as Chabahar port bypasses Pakistan directly. On Iranian side India can directly access International North South Trade Corridor (INSTC) to reach its goods to Europe. This route is 40% shorter and 30% cheaper than current sea route (currently sea route via Red sea to Suez canal is used for trade and transportation). Chabahar corridor could bring down cost and time of cargo trade to Europe by about 50%. The port is connected to Iranian existing highways which are linked to Zaranj in Afghanistan which further connects to 218 km Zanranj-Delaram highway constructed by India in 2009 at cost of Rs 600 crore. So ultimately it is a lifeline for landlocked country like Afghanistan to boost its trade and regional connectivity to International market and ensure its economic growth. IRCON International will set up a railway line at Chabahar to move goods right up to Afghanistan. Indian companies would set up a range of industries from aluminum smelter to urea plants in the region. State-owned NALCO ( National Aluminum Corporation) will set up an aluminum smelter while private and co-operative fertilizer firms are keen to build urea plants.

At present, Pakistan does not allow India to transport through its territory to Afghanistan.  It would be absurd to consider India’s investment in Chabahar port as just a strategy to counter China’s influence in Central Asia. To have diplomatic and trade relations with Central Asian countries is important for India as well. But the problem has been the Pakistan’s approach. It was either Pakistan or Iran, through which India can reach to Central Asia via Afghanistan.

Chabahar port will make way for India to bypass Pakistan in transporting goods to Afghanistan using a sea-land route.The route primarily involves moving freight from India, Iran, Azerbaijan and Russia. The objective of the corridor is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Astrakhan etc. More or less CPEC ( China Pakistan Economic Corridor) will help only PAK & China but Chabahar has potential for other countries also. Keeping its importance in mind it would not be wrong to say Chabahar Port run by India will be as successful as CPEC. The success of Gwadar would depend on stability in Pakistan and the success of Chabahar can be maximized with a stable Afghanistan.

Solar Solution To Power Problem In Rural Africa An Inspiration For India

     More than 600 million people in sub-Saharan Africa lack access to electricity; 71 million in Kenya and Tanzania alone. Without any other options, these citizens are forced to either go without power or use kerosene, an expensive and oftentimes dangerous fuel that pollutes the air and creates fire hazards. But there is a solution that could bring affordable electricity to unserved and underserved populations while growing the local economy: pay-as-you-go solar.

     In a "pay-as-you-go" (PAYG) business model, a company essentially rents consumers a solar home system that comes with a battery, a charge controller, a solar panel, LED bulbs and a mobile charger. Basic systems have enough power to charge phones and lights, and larger ones could power small appliances like radios or TVs. Consumers use basic mobile phones – widespread in East Africa – to make payments on a daily, weekly or monthly basis.

     Through this model, companies can minimize the cost of collections by automating the receipt of payments, while remote rural customers get immediate access to basic electricity without having to take out a loan. A grid expansion project, while it may provide power to bigger appliances, can take years and significant investment to reach a rural or low-income community.

     PAYG entrepreneurs now service about 500,000 households in Kenya and Tanzania, but they represent only four or five companies, most of which are owned, managed and financed by foreign investors. This is a missed opportunity—both for citizens and for local businesses. However, local commercial banks are still not lending to these businesses because of the perceived risk of this new model. As a result, local entrepreneurs can’t access the capital they need to get started. Public finance from development finance institutions (DFIs) like the African Development Bank, Green Climate Fund or KfW could play a key role in growing the PAYG solar industry.

      DFIs have long relationships and active lines of credit with banks throughout Kenya and Tanzania, so they can spur commercial banks to make debt capital available in the local currency to entrepreneurs. Their involvement could include providing guarantee schemes or lines of credit to local banks, channeling investments through impact investors, or investing in PAYG companies’ marketing and distribution strategies, among other initiatives.