In the last week of march California Congressman Darrell Issa shot off a missive to Secretary of Defence Donald Rumsfeld and USAID Administrator Ambassador Wendy Chamberlain. His mission: to prevent US Armed Forces and the US Reconstruction and Civil Affairs Office from deploying a cell-phone system in Iraq based on GSM (Groupe Speciale Mobile) as the ploughback would flow to France and other European countries. Instead, Issa urged the Department of Defence to opt for US-developed CDMA technology. The aim: to ensure that US companies like Qualcomm got the dividends from post-war Iraq.

FROM THE ASHES: Rebuilding post-Saddam Iraq could cost at least $150 billion

It is early days as yet but the race to get a slice of the action is on. Estimates of the potential spend in the reconstruction of post-war Iraq vary between $25 billion (Rs 1,20,000 crore)and $400 billion. Rubar Sandi, an Iraqi exile who heads the Washington dc-based US-Iraq Business Council has in his approximation to the US State Department and USAID stated that at the most conservative levels it could cost as much as $150 billion to put Iraq back on the rails. As of now, the US Government has set aside $3.5 billion for reconstruction and $500 million for humanitarian aid.

As in the 1940s, the contracts are controlled by the US and the initial deals doled out to US corporations have triggered outrage. Chris Patten, head of the EU's external relations, has slammed the Bush Plan as "maladroit" and hinted that EU would not contribute to the rebuilding of Iraq. Obviously, lobbying for a seat at the party is only beginning. Last week, even as sirens were going off in Kuwait, Swashpawan Singh, Indian ambassador, convened a meeting of CII and FICCI representatives in the Gulf to see how Indian companies could "participate" in Iraq's reconstruction and rehabilitation. India may not have got much out of the rebuilding of Kuwait in 1991 or Afghanistan ($14 million in a total spend of $900 million). But the story in Iraq is bound to be different. It is an economy that is much bigger and has seen greater devastation. Also there are no geographical and geopolitical hurdles here. In fact India has already acquired orders worth $1 billion under the food-for-oil programme while products worth $250 million have already been shipped and paid for.

IRAQ UNPLUGGED: Getting Iraq connected could cost $ 5 billion

Another positive aspect is that India has had long-standing trade relations with Iraq. Amit Mitra, secretary-general, FICCI, says Indian businesses have had a significant level of interface with Iraq. "Indian companies have executed big projects, built roads, highways and bridges," he says. "BHEL is in the process of executing a Rs 550-crore project for building turbines for power generation. PCP, the construction company with interests in West Asia, has executed roads and highway projects. Builders like Ansal and Som Dutt have been involved with construction activities." Indeed, CII has short-listed a dozen Indian companies (ranging from construction majors like Larsen & Toubro and Hindustan Construction Company to telecom outfits like TCIL). As Tony Jashanmal of Jashanmal and Partners, which runs a large chain of stores across the Gulf, says, "Indians have the ability and acceptability in Iraq that would give them a headstart."

Indian corporates are already working the ropes. Says Essar Vice-Chairman Ravi Ruia: "Steel will be a major requirement and given our presence in the region we are looking at the opportunities." So is cement and construction outfit L&T. A. Ramakrishna, deputy MD and head of the engineering and construction division, L&T, is emphatic: "We have done work there and you bet we will be there."

SLICE OF THE PIE Post-war Iraq offers a multi-billion dollar opportunity for INdian companies

TELECOM With communication centres bombed and equipment that badly requires upgradation, Post-Saddam Iraq could present a $5 b plus market for phones and software.

SEAPORTS Basically, Umm Qasr. Stevedoring Services of America already bags a $4.8 m contract for damage assessment. Coming up: tenders worth $300 m for upgradation of the port's facilities.

OIL & POWER Could cost $5 b initially and over $30 b in the long term if the reserves are to work. Add: Repair of 10 major power plants and restoration of grid links.

AIRPORTS Iraq has 74 airports in all, including six major airports. Restoration of all air links to southern, central and northern Iraq means an initial spend of $500 m.

ROADS & HIGHWAYS Repair and reconstruction of the over 4,000-km network of roads and bridges in Iraq presents an opportunity to Indian construction companies.

SCHOOLS & HOSPITALS Besides restoration of over 25,000 schools, 200 hospitals and 2,000 health centres, Iraq also needs staff, which the US plans to outsource from other countries.

India, says K.V. Kamath, CEO and MD, ICICI Bank, has immense potential in post-war Iraq as "it is extremely cost competitive now, be it in infrastructure or services such as education and health". And he wants his clients to seize that opportunity. As Arun Patankar, principal adviser, CII, indicates, while Indian companies may not match the size of American MNCs "it has expertise and the skilled human pool to execute projects". India with its large reserve of skilled manpower can tap opportunities not just in mega projects but also in the creation of social infrastructure like schools and hospitals. Dubai-based Raza Siddiqui, director (Middle East operations), Apollo Hospitals Group, agrees. "We are keen to go to Iraq and can swing into operation fairly quickly." Medical care groups like Apollo would be ideally placed to set up healthcare centres and super-speciality hospitals for advanced medical care, including tele-medicine.

But to capitalise on its strengths, "India will need to first position itself appropriately with a mix of economic diplomacy and alliances with multinational bidders", says Vimal Bhandari, executive director, IL&Fs. The opportunity is huge. Gori Khandelwal, chairman, Kuwait India Business Council and an adviser to Gulf Bank, makes a simple back-of-the-envelope calculation for a perspective. If the new regime exports its potential of three million barrels a day it should give them an annual income of $22 to 25 billion a year. That, Khandelwal says ,"is a lot of money. The entire region is going to experience a huge boom and India should jump on the bandwagon quickly".

-with Raj Chengappa and Malini Goyal