John Rice, Vice Chairman of GE while welcoming government's decision of hiking gas prices said it is not just a big positive for the company but also for the sector as a whole.
He also believes foreign direct investment (FDI) would start to come in on account of this decision.
The company is also looking at expansion plans for their Chakan facility. We are already thinking about phase II of that significant investment because the foundation for the premise under which we initiated it, is solid," he added.
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Excerpt of his exclusive interview with CNBC-TV18's Shereen Bhan
Q: Do you see FDI start to come in soon?
A: It is certainly a positive and there are number of projects which are moving forward on that basis. So, that is encouraging.
The other part that is encouraging that has occurred since the last time I was here is the prime minister's creation of a cabinet group that is going to really try to move infrastructure projects along in the system and try to make decisions a little bit more quickly and that is really important too. Whether they happen before the election or quickly after the election, we are in the stands cheering for those decisions to be made.
Q: To continue our conversation specifically as far as the oil and gas sector is concerned - what is the outlook for you particularly for this sector because as I pointed out gas prices are likely to move up come April 2014. We have seen partial diesel deregulation take place, the power sector is looking better as well today. Power, oil and gas - how is that business in India looking for you?
A: It looks promising. There are significant investments that are ready to be made and projects that are ready to be launched if the pricing mechanism is established the way it is anticipated. It will be that can flow through to the power sector because there has to be electricity pricing that attracts those investments too.
So, we are encouraged but there are few things that have to happen over the next 12 months in order for the flow to start in an unimpeded way.
Q: What is the feedback that you are getting from your team in India? At USD 8.34 mbtu which is what the gas price is likely to be coming April 2014, are we going to see significant investments coming into the sector?
A: We think that will be good enough to get something started.
Q: How are you looking at the elections? GE has been around in India for over a 100 years, you have seen governments come and go and regimes change, how are you looking at the elections?
A: We do deal with new governments; we have been through government transitions in many countries in the last 12-24 months. So, it is part of what we do. We have to be able to operate regardless of what government is in power. We want to be a citizen that any government wants to have in their country.
Q: We are almost at the end of calendar year 2013. You have already made significant investments in your manufacturing facility in Chakan which is the largest outside of the US for GE. What more can we really expect from GE in terms of investments in manufacturing specifically?
A: We are already thinking about phase II of that significant investment because the foundation for the premise under which we initiated it, is solid. The opportunity we have is not just to contribute our Indian operation from that facility but to export is enormous and so we are thinking about our expansion plans.
Q: What would phase II entail in terms of investments, in terms of your expansion plans?
A: We haven't decided that but my guess is it will be atleast as big as phase I.
Q: What could be the broad options that you are considering at this point in time?
A: The hard part about answering that question is we are not limited we have a lot of broad array of things we can choose from.
Q: Will this be an expansion at Chakan itself or you are looking at smaller plants because that was something that you were considering as well?
A: We are thinking about doing it at the existing facility but we could also look at other locations but we want to take advantage of the synergies that are there.
Q: We have just seen China announce another set of path breaking reforms and China is one of your largest markets as far as infrastructure is concerned. How bullish are you feeling about China because there was a lot of concern and fear on just how much China would slowdown and what that would then mean for world growth?
A: I am a bull on China. I think that at 7 or 7.5 percent growth if you are the world's second largest economy, you shouldn't have to apologies for that.
Q: You are a bull on China at 7.5 percent. Are you as bullish on India at 5.5 percent?
A: If we start to see some of the decisions being made, if the pricing that we talked about before in terms of the resource pricing - if those actions take place the way they are contemplated and post elections there is a government that takes decisions on some of the big infrastructure needs, I could be just as bullish.
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