Toronto: India's Power Minister Suresh Prabhu is likely to sign a memorandum of understanding (MoU) with Canada for a 75 million Canadian dollar investment in power development on his visit to the country next week.

Prabhu is visiting Canada to participate in a forum on "Reforms and Opportunities in the Indian Power Sector" in Toronto at the invitation of the Canadian government. The event is being sponsored by the Canadian Department of Foreign Affairs and International Trade and the Canada-India Business Council (C-IBC).

Prabhu will visit Canadian capital Ottawa, where he is likely to sign a MoU with the Export Development Corporation (EDC) for the deal. EDC's condition in regard to this investment is that 50 per cent of the contracted goods and services must be Canadian.

"Recent liberalisation in the power sector including increased private sector participation, improved investment incentives, such as a 10 year tax holiday for new power projects, and relaxation of price control mechanisms have made India an attractive market and investment destination," C-IBC executive director Murray Jans told IANS.

Jans said their efforts during the forum, scheduled for June 8, would be to induce Canadian companies to look to India as there are opportunities in power generation, transmission and distribution, rehabilitation, maintenance and upgrading, conservation and efficiency and non-conventional energy.

"The Indian economy offers a vast and growing market for the global power industry," he said. "Indian demand for power is expected to continue rising and its government envisions adding 98,000 Mega Watt (MW) of capacity during the 10 year period from 1997 to 2007."

"India is working hard to reform its power sector, both on the national level and on the state level. Extensive power generation and distribution infrastructure is needed to meet the country's projected requirements," he said.

As part of Canada's policy to re-engage with India, Prabhu's visit is one of a number of ministerial meetings between the two countries.

Indian Commerce and Industry Minister Murasoli Maran is to visit Ottawa in July for bilateral trade negotiations, Indian officials said.

There are plans for Canadian Minister for International Trade Pierre Pettigrew to go to India in the fall and Minister for Foreign Affairs John Manley early next year, informed sources said.

India Abroad News Service