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(Koppal, Karnataka, August 25th, 2011)
Honorable Chief Minister Sadanada Gowda,
Distinguished Guests,
Ladies and Gentlemen,
I am very happy and honored to attend this reception on the eve of the Commissioning Ceremony of Iron Ore Pelletization Plant of Xindia Steel Limited. On this auspicious occasion, I would like to extend, on behalf of the Embassy of People's Republic of China in India, warm congratulation to all the Chinese, Indian and American friends who have made their contribution to bring this project into reality. I also want to thank relevant Indian government agencies especially the Karnataka State Government for their invaluable and indispensable support to this project.
Ladies and Gentalman,
Xindia Steel Limited is a joint venture and the first of its kind between China, India, USA in the field of iron and steel industry. I would call it a strategic alliance among Chinese, Indian and American companies, namely China Xinxing Group and China Minmetals Group on Chinese side, Kelachandra Group and Manasara Group on the Indian side and McWane Inc. on the American Side. People often stress the importance of teamwork. I think this is a very good team. Therefore, I am sure they will do excellent job. The project is aiming at achieving win-win outcome. And it is an outstanding example of ever expanding cooperation among China, India and United States in the economic field.
Iron and steel industry is a crucial sector for economic development of any country. As a fast growing economy, India has enjoyed a fast growth of 8 to 9 per cent annually in recent years. Against this backdrop, the demand for iron and steel and their products by Indian market is on steady rising. Therefore, the Xindia Steel Limited project is very timely. The whole project will be implemented in a phased manner. We are happy to see that the first phase of an 8 hundred-thousand tons per annual Iron Ore Pelletization Plant has been successful completed, which is going to be commissioned tomorrow. In the next phases, the construction of a ductile iron pipe factory with production capacity of 2 hundred-thousand tons annually and a steel factory with the production capacity of 2.5 million tons per annual will be followed. I am sure, once the whole project completed, it will generate economic benefit to the local economy and enhance Indian capability in iron processing and steel manufacturing.
It is also important to note that, apart from turning out iron and steel products, Xindia will also creates job opportunity for the local people. We are glad to see that Xindia has already provided around 200 jobs after the First Phase completed. According to the projection, Xindia would create more than 10,000 direct job opportunities after the third Phase construction completed. Furthermore, Xindia Steel Limited is giving great attention to its social responsibility and actively serving local community. It has donated more than 2.1 million Rupees worth of bags, stationeries and tableware to the primary schools around the factory. We believe that Xindia Steel Limited will make more contribution to the harmonious and inclusive development of local communities and the welfare of the people.
Ladies and Gentlemen,
China and India are two fast emerging economies in the world today. Against the turbulent world economic and financial situation, we have every reason to join hands and work together to withstand the challenges and ensure a sustained and healthy development of our economies. China and India are already major trading patterns to each other today. In the past 10 years our bilateral trade has surged 20 times. The trade volume reached 61.7 billion USD in 2010. During the first half of this year, the bilateral trade maintains a strong momentum of fast growth. The two-way trade volume has reach 35.27 billion USD, with 16.1% of increase on year on year bases. Given the magnitude of two countries' population, which stands at more than 2.5 billion, huge markets and potentials of our economies, there still exists great opportunities for us to cooperate with each other. It is my view that China and India should make new efforts to diversify our economic cooperation by expanding the scope of cooperation. I am happy to see that while maitaining the strong momentum in trade, both sides start to look for new cooperation in mutual investment. It is Chinese government's policy to encourage those technically and financially capable companies to "go abroad" and invest overseas or establish joint ventures with companies from Indian and other countries. We also welcome Indian companies to invest in China. I hope the commissioning of this project will herald in a new wave of cooperation in mutual investment between China and India which will push our economic cooperation into a new height and bring tangible benefit to the people of both countries.
Ladies and Gentlemen,
China and India relations have witnessed a rapid progress in recent years, the leaders of our two countries have attached great importance to the development of mutually beneficial cooperation of both sides. We have established strategic cooperative partnership for peace and prosperity. Cooperation in various fields between two countries is going on in all round manner. Two countries are also working close on important international issues such as climate change and reform of international financial system etc. This year is designed as China-India Exchange Year. We have undertaken a series of activities to promote cultural, educational and people-to-people exchanges with a view to further enhance mutual understanding and trust. All these will further cosolidate the basis for our future cooperation in economic and other fields.
Finally, I want express my very best wish to the success and bright future of Xindia. I am sure with concerted efforts of both side, Xindia Steel Limited will become a success example of China and India cooperation.
Thank you!
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