Essar deal safe, to succeed: Envoy

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THE outgoing Indian ambassador to Zimbabwe Jeitendra Tripathi says the NewZim Steel multimillion dollar Essar deal would succeed as parties involved have reaffirmed their commitment to resuscitate the giant steel maker.Ambassador Tripathi, who leaves the country next week, said everything was on track and nothing would stop the deal.

He was speaking after bidding farewell to Senior Minister of State in the Office of the President and Cabinet Cde Simon Khaya Moyo at his Munhumutapa office in Harare yesterday.

“As far as I understand, the deal is on and it is a good and encouraging thing for there has been inactivity for about three years,” Ambassador Tripathi said.
“The Government of Zimbabwe has finally realised that if a country enters into an agreement with a company it should be honoured because if you do not honour it, it creates bad negative signals in inviting investment.”

An estimated US$650 million is required to resuscitate NewZim Steel.

At its peak, Zisco produced more than one million tonnes of steel per annum and employed up to 4 000 workers.

Ambassador Tripathi said a new steel and power plant (600 MW) would be built.

“Essar will carry out construction work and they will have to demolish the entire steel plant because it is too obsolete,” he said.

“They also have to construct a new power plant from where they will have the power for the plant as well as neighbouring areas. They will also sell (power) back to the national grid. These physical constructions will take time but meanwhile they are in touch and they have already employed those 3000 workers who had been retrenched by the ailing company.”

The envoy called for the materialisation of all the projects that were in the pipeline saying this would strengthen already flourishing bilateral relations between Zimbabwe and India.

Ambassador Tripathi said Indian investors were not in Zimbabwe to take its resources but to share knowledge and experiences.

“Looking back, the bilateral relations have been good since 1980,” he said. “They have been growing as evidenced by visits by high profile people to our country like the Vice President (Joice Mujuru). The policy of the Government of India and Indian people is not that of a giver and taker but it is that of sharing knowledge. We have suffered the same colonial rule and gone the through same developmental processes and decisions. We know where the problem lies that is why we want to share knowledge and experiences.”

Minister Khaya Moyo said relations should be increased in the area of trade.

“We have benefited much from your country if you look at the way your SMEs are organised, no other country has done that effort,” he said. “We want to see more effort being undertaken in the mining sector and the steel industry.

“It is pleasing to note that the Essar deal is getting into gear but we also know you have experience in the polishing of diamonds, an area which is important to us.”

He said bilateral relations between the countries had been going in a “positive” direction.

“We have been very close and our interactions have been very educative and we have benefited from your vast experience and diplomatic skills,” he said.
“In 1980, your leader Mahatma Gandhi came here and we had a tremendous time with the delegation and you were among the first countries to establish diplomatic relations with us.

“Since then we have seen things happening in the positive direction.”

The minister commended India for recently holding “peaceful and organised elections.”