Mumbai: Corporates such as Larsen and Toubro, Godrej and Boyce and Ispat Industries are in the final stage of negotiations with various US, UK and Gulf-based corporates to bag contracts for various reconstruction projects in Iraq.

L&T has already sent a five-member team to Baghdad to explore business opportunities in the war-savaged country, while Ispat Industries has registered with Bechtel Corp, which has bagged a $680-million contract for a reconstruction project in Iraq. Godrej is believed to be talking to various Gulf-based companies for supplying various industrial materials.

Says a senior L&T official: "We have the track-record of rebuilding Kuwait after the first Gulf war in 1991. This will be one of our unique selling points while negotiating with the US firms."

Ispat Industries director Vinod Garg says the Bechtel contract does not contain any buy-American provisions, which implies that the global company was likely to source material from most convenient and cheapest sources; except six countries — Cuba, Iran, Laos, Libya, North Korea and Syria. Even domestic downstream suppliers may not have to be accommodated and this is where the opportunity for India lies.

Says Godrej and Boyce export manager P B Jagtani: "We are in talks with various companies, but no final deal has been finalised yet." However, industry sources say Godrej has already bagged a contract from Kuwait-based Zayani group for supplying industrial lockers.

Says an Essar Steel spokesperson: "We will decide in the next one or two days whether to send our representative or not. We are eyeing the Iraq market for our construction and steel businesses." At the conference, presentations about tendering and subcontracting processes and requirements will also be made.

India has identified roads, airports, ports, communication system, waste treatment plants, power generation and distribution, housing and oil projects as sectors for domestic industry to participate in the reconstruction work of Iraq.

"Indian corporates will have to look at subcontracting major reconstruction contracts, which are likely to be awarded to US and UK firms. It looks like getting the crumbs, but that is the way to make a start," says R M Abhyankar, secretary, ministry of external affairs.

For the Indian industry, contracts for repair and maintenance of roads, bridges, airports, ports, communication system, water treatment plant, waste-disposal system, power generation and distribution, housing and commercial complexes and upstream and downstream oil projects present an opportunity, he adds. "Besides, there is a tremendous scope for trading consumer goods like wheat, milk and milk products, and medicines."

The industry expects the surge in demand for steel due to Iraq reconstruction to last for the next two-to-three years, as the total rebuilding of Iraq might take some three-to-five years.