Russian firms face delays in Sipat, Barh thermal power projects, protocol notes

It records the decisions and commitments made by India and Russia to enhance bilateral trade, investment, and scientific cooperation.

Who it concerns: The agreement involves the Government of India (led by the Minister of External Affairs) and the Government of the Russian Federation (led by the Deputy Chairman of the Government). It affects sectors including trade, energy (nuclear, oil, gas), defense (aircraft, shipbuilding), technology (IT, biotechnology, nanotechnology), banking, tourism, and specific industries such as automobiles, metallurgy, and pharmaceuticals. Specific entities mentioned include ONGC Videsh Ltd., Tata Motors Ltd., Sberbank of Russia, Gazprombank, and various ministries and research institutes from both countries.

What was agreed

• Target to increase bilateral trade turnover to USD 10 billion in 2010.
• Target to increase Russia-India trade to USD 20 billion by 2015.
• Commitment to continue the Integrated Long-Term Programme of Cooperation in Science & Technology (ILTP) for another 10 years with dedicated funding.
• Agreement to initiate steps for signing an MoU between RUSNANO and India's Nano Mission by February/March 2010.
• Recommendation to expedite the establishment of an Indo-Russian Technology Centre.
• Agreement to set up a fast-track mechanism for the renewal of work permits for Indian employees in Russia.
• Sixteenth Session of the Commission scheduled to take place in New Delhi in 2010.

Also in the document

• The Russian side expressed concern over delays in the construction of thermal power stations 'Sipat' and 'Barh'.
• The Indian side expressed concern regarding non-fulfillment of contractual obligations by Russian companies, specifically citing contracts between ONGC & Amur Shipbuilding Plant and Tata Motors Ltd & M/s ZAO Amur/JSC VTB Bank.
• The sides noted the 'Titanium Dioxide Project' in Orissa as the first commercial project permitting the use of the Rupee-Rouble fund against Russian equity contribution.
• The sides welcomed the acquisition of assets in oil and gas deposits in the Tomsk Region by ONGC Videsh Ltd.
• The sides agreed to initiate mega projects in Basic Sciences and Innovative R&D with dedicated funds from both sides.