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Indo-US biz gets boost during Obama visit

Last Updated: Saturday, November 6, 2010 - 20:45

Mumbai: On his longest visit to any country,
US President Barack Obama today announced USD 10 billion worth
deals, including a USD 2 billion equipment sourcing plan of
Anil Ambani Group firm Reliance Power and SpiceJet`s pruchase
of 30 Boeing 737 aircraft.

"As we look to India today, the United States sees an
opportunity to sell our exports in one of the fastest growing
markets in the world. For America this is a jobs strategy,"
Obama said kick-starting his Saturday-to-Monday visit to

Addressing a business summit, he said US companies were
finalising 20-odd deals worth around USD 10 billion (nearly Rs
44,000 crore).

"Today`s deals will lead to more than 50,000 jobs in the
United States," he said.

These include the purchase of 30 737s from Boeing by low
cost airline SpiceJet for USD 2.7 billion and Anil Ambani
Group firm Reliance Power sourcing equipment for its 2,400
megawatt expansion of Samalkot power plant in Andhra Pradesh.

Also on radar are Indian military`s plans to buy aircraft
engines from General Electric and prelimary pact between
Boeing and the Indian Air Force for purchase of 10 C17s.

General Electric Co., whose equipment generates about
one-third of the world`s power, will supply gas and steam
turbines worth USD 750 million to the USD 10 billion Samalkot
expansion project.

Partnership with GE and other US companies would result
in more than USD 2 billion of American exports to India over
the next 12 months, R-Power said in a press statement.

GE Chief Executive Officer Jeffrey Immelt, who is part of
the powerful business delegation accompanying Obama, signed a
memorandum of understanding for the order with Ambani.

The project will be operational by 2012.

Obama has said he wants to double US exports to more than
USD 2 trillion in five years, targeting emerging nations
including India.

"The order of 30 aircraft, the second such order by
SpiceJet, will enhance it`s penetration in India`s low cost
market," said Bhulo Kansagra, Director and one of the
promoters of SpiceJet, at the US India Business Council meet.

Boeing India President Dinesh Keskar added that the deal,
announced today, was signed late last month after it got
necessary approvals.

During his visit, Obama is also to announce removal of
almost all of the remaining Indian defence and space
organizations from a list of entities maintained by the US
government to curb proliferation, and relax dual-use rules for
Indian firms that regulate technology with both civil and
defense applications.


First Published: Saturday, November 6, 2010 - 20:45
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