Chapter: The Strategic Discussion with France
Date: 26th January 1997
Time: 2:30 PM
The whole day stretched ahead of him, still buzzing with fresh sounds of celebrations on this Republic Day. He reached the French Embassy for a very important meeting, accompanied by Mahesh. This was no ordinary meeting with diplomats but to lay down the foundation of the long-term cooperation between India and France in infrastructure, defense, and financing.
Inside the conference hall, the ministers were waiting-French Defence Minister Claude Boucher and the Minister of Transport, Sylvie Martine curious, grim-looking. By this time, no doubt they already had done their homework on Animesh -he wasn't like any other Indian leader; ambitious could be a defining word with respect to the scale of policies of Animesh, most of all to make an intention all too clear, a mission to modernize India as never before.
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"Honorable Prime Minister Animesh, nice to meet you, said Minister Martine, advancing her hand for a handshake. We have heard of the changing policies that you are implementing in India, and I must say, some pretty bold, exciting ones at that."
Smiling, he replied back to her firm handshake, saying, "Thank you, Minister; it always feels great working with France on projects that touch the futures touching our countries.
The rest sat. Mahesh and toehr Indians minister sat along with Animesh with neat files on the table. He plunged into business matters with the visiting French ministers without wasting even one minute.
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"Minister Martine, Animesh began, "The railway network of India is our backbone. Of course, high-speed railways are enviable, but at this juncture, so we tend to target semi-high-speed rail upgrades. Our focus has been to strengthen the tracks for facilitating speeds up to 160-240km/h, which is cost-effective and practical to our needs.".
Martine nodded; that indeed did sound like something quite plausible, coming from Animesh. "That's a very realistic target, Prime Minister. France has experience in upgrading tracks for semi-high-speed trains, particularly in regions where it is not possible to build an altogether new high-speed corridor. What have you planned in your mind concerning this project?
Animesh elaborated, "We intend to modernize the Delhi-Mumbai and Delhi-Kolkata corridors as our first step, so that the travel of passengers becomes faster and the carrying capacity of freight improves. We want to focus on electrification, track strengthening, and signaling system upgrades. We are also interested in the French expertise in deploying semi-high-speed locomotives and training our engineers."
Minister Martine smiled. "This is achievable. France would be glad to assist with the necessary technology, know-how, and funding. Our engineers can also work closely with Indian Railways to ensure the smooth execution of the project."
Animesh nodded. "What about financing? We'll require a loan to kickstart this transformation."
"Considering the scale and purpose of this project, we're ready to offer a $20 billion loan for railway development," Martine replied. "We propose a low-interest rate of 1%, repayable over 5 years. This aligns with our commitment to supporting sustainable development in India."
The Minister, Boucher leaned forward, palpably interested to discuss defense. "Prime Minister, we've been following with a lot of interest your defense initiatives. The ambitions of India to make its indigenous manufacturing strong perfectly align with the expertise France has for co-development and technology transfer. How do you see our cooperation in this?
Animesh had gone deadpan: "India looks to reduce its dependency on imports and is keen on developing a strong defense manufacturing ecosystem. Co-development of the next-generation fighter jet, advanced radar, and naval equipment is of particular interest. We will get our HAL and DRDO teams working along with the French to make this a reality.
Boucher nodded approvingly. "France is committed to sharing its cutting-edge technology. We're prepared to offer a joint venture for the development of a 4th generation fighter jet, leveraging India's growing technical expertise and manufacturing capacity. This will include technology transfer and a significant role for Indian engineers."
Boucher agreed. "That can be arranged. We'll draft a roadmap for defense cooperation, starting with immediate technology transfer agreements and long-term joint ventures."
With the discussions on infrastructure and defense nearing completion, Animesh turned to the most critical part of the meeting: financing.
"We understand that significant investments are required for these projects," Animesh said, his gaze steady. "While the terms proposed for the railway loan are favorable, we'll need additional funds to support our defense upgrades and infrastructure growth. I'd like to discuss a broader loan package."
Minister Boucher leaned back and wore a reflective look on his face. "Prime Minister, with the breadth of your ambitions and clarity of vision, although the amount is huge, however France is willing to extend $50 billion in total loaning. This shall cover infrastructure, defense, and all related projects. The interest rate shall remain at 0.5%, repayable over 5 years. However, we would want transparency in the utilization of funds and regular progress about projects undertaken.
Animesh smiled wryly. "Transparency is the hallmark of my government's policies. I do assure you, money spent so would be well spent and accounted for."
(Hehe....lol....am I right!)
As the meeting was nearing its end, Animesh leaned forward into his most diplomatic yet inviting tone.
"Minister Martine, Minister Boucher," he began, "while we've discussed infrastructure and defense at length, there's another opportunity I'd like to bring to your attention. India is undergoing rapid urbanization, and as part of this, we're developing greenfield cities across the country. These are new cities designed with a focus on sustainability, smart infrastructure, and economic growth."
The French ministers exchanged a glance, intrigued by this new topic.
"These are not mere projects of urbanization; these are opportunities to build an innovation center, hotbed economic activity," he furthered. "We also provide minimum corporate taxes for those companies that would contribute to job creation and augment the revenue streams in India in any way in the manufacturing, technology, infrastructure, and clean energy areas.".
Minister Martine raised an eyebrow: "Prime Minister, this is exciting. France has several companies focused on green city technologies: smart grids, sustainable construction, and renewable energies. How would you describe such involvement?
Animesh smiled: "We invite the French companies to participate in all the links of development-from town planning right up to installation of the latest technology. For example, Alstom Group will be able jointly to work with the Indian companies in establishing modern transport systems and Schneider Electric will be in a position to help set up efficient electricity grids. We are encouraging investments in housing, water management and waste treatment so that these cities turn into global benchmarks.".
Minister Boucher was ever the pragmatist, always to see the bigger picture. "Prime Minister, I see these greenfield projects gelling with some of your other initiatives. The better railways will connect these cities, and the defense collaborations can keep them safe. It is an ecosystem approach."
"Exactly," Animesh nodded in agreement.
"And," Animesh said, "for the French companies which invest in these cities:
1. Minimum Corporate Tax Rates: Companies that will create upwards of 5,000 direct jobs and more than 20000 indirect jobs in five years, can pay corporate tax rates as low as 6% for ten years.
2. Revenue Sharing Incentives: Firms whose contribution to India's revenue, either by way of exports or new industries, will be offered profit-sharing rebates.
3. Land Subsidies: Greenfield projects will be given subsidized land rates for industries in strategic sectors.
Minister Martine did look impressed. "This is an attractive package, Prime Minister. I will make sure that the French government and our private sector leaders are aware of this opportunity. I think companies like Renault, Dassault and others will be keen to explore partnerships with India.".
Animesh then concluded, "France has always been a trustworthy partner for us, and these initiatives, I believe, will take the relationship to further heights. We can create a model for sustainable development, modern infrastructure, and global cooperation together.
Minister Martine extended her hand: "Prime Minister Animesh, your vision for India is tall. France feels privileged to be a part of it, and I do assure full cooperation from our side with your government for the realization of these plans.
Adding to this, Minister Boucher said, "And from the defense side, I can confidently say-this partnership will not only benefit India and France but give a global example of co-development and trust."
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As Animesh and Mahesh were coming out of the embassy, Mahesh couldn't but smile. "Sir, with such deals, India is surely riding ahead towards a better future.
Animesh smiled but said nothing because he knows although it seems so, actually it was very difficult for India because there is also an Asian Financial crisis coming in the mid 1997. And for this he was preparing for it.
"Though...you may feel...but actually this is nothing....I have many things to...in the months of the February." Animesh shook his head.