Posted on: 07-05-10 23:49:59
http://www.theglobeandmail.com/globe-investor/bombardiers-train-passage-to-india/article1561138/
Nowhere is the ordeal of doing business in India better exemplified than in a tiny stretch of railway track in the sun-baked state of Gujarat.
It is here that Bombardier (BBD.B-T5.040.071.41%) Canada’s global transportation giant, has been literally stopped in its tracks by India’s infamous government bureaucracy.
The company has spent more than $45-million building a new train factory that has created 750 desperately needed jobs. Despite the investment, Bombardier has been stymied in its request to use a 300-metre section of the local railway to deliver new subway cars to its customer in New Delhi, 800 kilometres to the northeast.
“It has been more than 14 months we have been dealing with the authorities trying to get permission to transport our trains. We met this morning, in fact,” says a frustrated Pierre St-Onge, the general manager of the Savli facility.
Quote:
Originally posted by KumarM
http://www.theglobeandmail.com/globe-investor/bombardiers-train-passage-to-india/article1561138/
Nowhere is the ordeal of doing business in India better exemplified than in a tiny stretch of railway track in the sun-baked state of Gujarat.
It is here that Bombardier (BBD.B-T5.040.071.41%) Canada’s global transportation giant, has been literally stopped in its tracks by India’s infamous government bureaucracy.
The company has spent more than $45-million building a new train factory that has created 750 desperately needed jobs. Despite the investment, Bombardier has been stymied in its request to use a 300-metre section of the local railway to deliver new subway cars to its customer in New Delhi, 800 kilometres to the northeast.
“It has been more than 14 months we have been dealing with the authorities trying to get permission to transport our trains. We met this morning, in fact,” says a frustrated Pierre St-Onge, the general manager of the Savli facility.
Their problems are stated in the article
In a place where baksheesh is regarded by many foreign companies as just another business expense, Bombardier says it has refused to pay bribes or kickbacks to speed its progress. But there have been plenty of opportunities to do so.
“That makes it very difficult for us. I know that if I would just give 100 rupees, it would get done within seconds. But I cannot. So it will take a week instead of seconds. This is where it gets really mind-boggling,” Mr. St-Onge says.
Further, there is a strategic mistake done. They do not have a local partner unlike China where they do have. All that they have to do is to take Mukesh Ambani or some other corrupt business group, and there is no dearth of it in India, as a local partner an dtheir problems will vanish.
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Just an execuse and trying to put a brave face on strategic failures. The article clearly mentions the shortcomings on Bombardier's part. It is not like Google is taking fight against Chinese government. Bombardier have been in India for over 3 decades and did not know about the system?
It will be a road difficult ahead for Canadian corporations if they expect that they will get similar govt protection/comfort any where else that they get locally.
And same goes for Canadian Govt, if the policies are not relaxed (e.g. Wind had to fight war), the businesses have a lot other places where they can get benefited bettter and faster.
