1. Sino-Indian Energy Cooperation in the 21st Century
Sriparna Pathak Raimedhi,
Observer Research Foundation,
20 Rouse Avenue Institutional Area,
New Delhi ,
India

2. Introduction
Interdependence, globalisation- states being inextricably tied together
Self reliance as the key, global economies have become more interdependent
India and China as key players in the 21st century, economic complementarities between the two
Both net importers of energy, more to gain through collaboration and interdependence
China: access of markets for selling energy sources/ India: uninterrupted supplies of energy for sustained economic growth

3. Structure of paper Introduction Transactional Cooperation
Strategic Cooperation in Supply Chains
Global Partnerships- The Potential for Co-Investments
Conclusion

4. Transactional Cooperation
Both offer each other large markets, industrial bases, which can be cross leverages to enhance supply cooperation
Equipment supplies, capital and manpower can create resilient market linkages

5. Solar and Wind Energy China Mfg capacity>domestic demand
Solar energy mfg capacity 70 GW (2012), domestic demand 31 GW
Need for solar and wind market overseas
Provided USD 40 billion to overseas industries
Govt policies/SOEs
India
Massive solar potential, estimated at MW per sq. km of land
12th FYP aims at installing 10 GW of solar power
Can help revenue generation for Chinese firms
Economies of scale

6. Existing power supply agreements
Company Name
Lender Bank
Amount
Year
Reliance Power Ltd.
CDB, BOC,ExImBOC
US$1.1 billion
2010
Reliance Comm Ltd.
CDB, ICBC
US$ 1.93 billion
2011
Reliance Comm. Ltd.
CDB,ICBC,ExImBOC
US$ 1.18 billion
2012
Lanco
CDB
US$2 billion
Essar
CDB,PetroChina
US$ 1 billion
2013

7. India’s infrastructure: attractive sector for foreign direct investors, attractive avenue for Chinese Investment as India looks to spend US$1 trillion over the next five years. Half of this investment is expected to come from the private sector, as the GOI has announced a series of meaures to facilitate the investment

8. FDI Inflows from China Total FDI FDI from China % Rank Sectors Cos
US$ billion
US$ million
0.13
31st
Automob,Metallurgy,Pow,Construction,Services
Beiqi,Baosteel,ZTE,Shanghai Elec,TBEA Shenyang,Chenguang Bio-Tech

9. Lot of potential for further Chinese FDI inflow
Civilian Nuclear energy:India’s integrated energy policy- nuclear energy development plans of the Indian Govt. contingent upon import and subsequent indigenisation of LWR technology. China National Nuclear Cooperation: multiple designs for LWR and could consider technological development in cooperation with stakeholders in India.

10. Strategic Cooperation in Supply Chains
Both have multiple state oil companie, overseas investment: integral to both for energy security
Both: targeting same assets in the same host countries
Ex of energy assets acquired by the two: Peru, Syria, Sudan, Columbia and Iran
Both CNPC and ONGC have expressed interest in constructing an oil pipeline from South Sudan to Kenya’s East African coast to bypass the traditional export route through the north.
IAEA projection: Asia will soon account for up to 90% of oil exports from West Asia; China and India will account for the largest shares
Objective: create globally competitive value chains by facilitating trade and investment

11. Global Partnerships- Potential for Co Investments
Overseas investments: potential for commercial cooperation
African continent: case for cooperation
Telecommunications, food processing, manufacturing, infrastructure, tourism, bank offices services, etc.
Chinese and Indian MNEs increasingly in joint ventures with African firms foster exports from Africa to a wider set of markets located outside the African continent.

12. Thank You