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Russian Indian Projects
Russian Export and Import Figures During 2001-2006 || Russian-IndianTrade & Economic Ties
Russia-India: Geopolitical Project
With exchange of high level visits between the two countries, regional cooperation between Russia and India has been rapidly developing in the last few years. Both countries have large and growing economics with substantial human and natural resources, augmented by new strengths generated through reform and liberalization,emergence of avtive entrepreneurship,and strong science and technology tradition and capabilities. This creates large and significant possibilities for mutually beneficial cooperation between Russia and India.
Oil and Gas Sectors
During his visit to India in December 2004. Russian President Mr.Vladamir Putin said that Russia is Ready to contribute to energy stability of Indiaâ€™s growing economy, and development of its fuel and energy complex.The President further added that Russian companies would come to India with advanced technologies, which can boost Indiaâ€™s oil productivity. Russian companies like Zarubezhneft, Stroitransgaz, Neftegazexport, and Tymenneftegeofizika, which had some earlier work experiences with India,would take part in joint ventures between the two countries.Zarubezhneft has signed a contract with oil and natural Gas Cooperation (ONGC) of India to conduct drilling operations in the India state of Assam.
For projects to supply natural gas and hydrocarbons to India, Russian gas company Gazprom has signeda Strategic Cooperation Agreement with the Gas Authority of India Ltd (GAIL), and a Memorandum of Understanding (MoU) with the ONGC Videsh Ltd. (OVL) Gazprom and Zaruezhneftegaz, jointly with Gail work on contract with the Government of India for oil and ags exploration drilling operations in bay of Bengal. Their joint venture has completed firld seismographic operations,shipboard data processing and chosen a site for a 2,400 metre-deep exploratory well,conducted geological model investigations and carried out engineering and geological investigations in the drilling area.
On 3 December 2004, Gazprom signed a MoU with GAIL on cooperation no Russia, India and other theird countries,Following the accord, Mr. Viktor Lorents, President of the Russian construction company Stroitransgaz, met Indiaâ€™s Petroleum Minister, Shri Manishankar Aiyar and GAIL Director Mr. B.S.Negi at Moscow in January 2005 for further discussion on the matter. Back in December 1998, Lukoil of Russia and the Indian Oil Corporation (OIC) signed an agreement on long-term supplies of oil and oil products to India (15 million tones a year).In the first half of the same year, Lukoil Overseas Service Ltd conducted a series of talks with the OVL to examine opportunities for joint works.
Since December 2003, United Engineering Plants (OMZ) of Russia has been supplying mobile drilling units worth U$$13.6 million to ONGC, India,Then, ONGC looked into the possibilities to participate in development of the Kovykta gas condensate deposit in Eastern Siberia. According to Irkutsk regional administration, India agreed to invest around U$$6.5 billion into Kovykta . OVL has a 20 percent share in the Sakhlin-1 project and the Indian corporation has already invested U$$1.7 billion into the project. In the final count, Sakhlin-1 will provide 2.3 billion barrels of oil and 17.3 trillion cubic metres of natural gas. Russian industry and Energy Minister, Mr.Viktor Khristenko and Shri Mani Shankar , the then Petroleum Minister of India, attended the ceremony of starting commercial oil production, held on 01 October 2005. On 19-20 September, the Indian Petroleum Minister visited Moscow and he held a meeting with Mr. Viktor Khristenko, Russian Deputy Prime Minister Alexande Zhukov and top managers of Gazprom, and Rosneft. At the meeting with Zhukov, the Indian Petroleum Minister confirmed his governmentâ€™s intention to buy at least 10 million tones of oil from Russia. Considering European market being swamped with Russian oil, a long-term contract with India is most promising for Russia.
Nuclear Power Plants
On 12 February 2002, Russian company Atomstroiexport and the Nuclear Power Corporation of India Limited (NPCIL) signed a contract for Russian supplies of equipment and materials for the Kudankulam Nuclear Power Plant (NPP). The contract was concluded within the framework of MoU on Basic Principles of Cooperation on Kudankulam Npp signed on 6 November 2001 bu Alexander Rumyantsev, former Russian Atomic Energy Minister and Dr. Anil Kakodkar, Secreatary of the Department of Atomic Energy (DAE), India. Under the contract, Russia agreed to Supply equipments for the NPP including reactor and turbine units, and steam generator. Hundreds of Russian enterprises, including United Engineering Plants, Siloviye Mashiny, and many others are busy implementing the Kudankulam contract.â€ť We hope that in India with Russiaâ€™s participation,â€ť asserted Mr. Vijay Kumar Chaturvedi, Chairman and Managing Director,NPCIL.
Sakhlin-1 Project is one of the largest foreign direct investments in Russia. India has 20 percent participation in Sikhalin-1 Project and 20 percent participatory interest in Rosneft. So far, the project has spent over US$6 billion on exploration activities, environment studies, engineering designs, infrastructure improvements, taxes and others. Sakhlin-1 Project began operations in October 2005, and has been producing up to 50,000 barrels (6,3000 metric tones) of oil per day. Natural gas production of aroung 60 million cubic feet(1.7 million cubic meters)per day is being marketed to domestic customers in Khabarovsk Krai.Exxon Neftegas Limited is the main operators for Sakhlin-1 Project and other joint partners include SODECO of Japan (30 percent), RN-Astra (8.5 percent), Sakhalinmorneftagas-Shelf (11.5percent)and ONGC Videsh Ltd of India (20 percent).ONGC planned to increase the supply of crude oil from the Sakhlin oil and gas fields from the current 166,000 barrels per day(bpd) to 250,000 bpd. The Indian company received its first equity crude oil from Sakhlin-1 fields as tanker Viktor Titov delivered the import oil at Mangalore port on 1 December 2006. ONGCâ€™s subsidiary MangaloreRefinery Petrochemical Ltd (MRPL) will be processing the crude oil. Indian Petroleum Minister Mr Murli Deora formally received the crude oil and dedicated rs 317 crore isomerisation and mixed xylene unit to Russia.
Implementation of Kudankulam Npp in the state of Tamil Nadu in India is stipulated by the agreement signed between the former USSR and the Republic of India on 20 November, 1988 and subsequently the agreement of 21 June,1998. Nuclear Power Cooperation of India Ltd (NPCIL) signed a contract with Russiaâ€™s M/s Atomstroyexport for the project. The power plant has two sophisticated reactors of VVER typr having 1000MWs generating capacity. Design and project documentations of the plant were prepared by the Russian side, and scrutinished by a team of Indian scientists appointed by the Atomic Energy Regulatory Board (AERB) carried out an extensive review of the project documentation and cleared the design. In accordance with the agreements signed between International Atomic Energy Agency (IAEA) and the Government of India, concerning the application of safeguard in connection with supply of nuclear power plant from Russia, KNNP is under IAEA safeguard.ady to contribute to energy stability of India'ndia. strengths generat
To design boiler plants for Barh Thermal Power Plant (3*660MW), Russian company Technopromexport signed three contracts with National thermal Power Corporation (NTPC) of India in March 2005. Now, Technopromexport is continuining the contract for modersising the Obra thermal Power Plant (5*50MW), signed in February 2003 with the Indian state of Uttar Pradesh. On the other hand, the Rusian company is also implementing contract for supply and assembly of hydro-mechanical equipments at Indira sagar Hydroelectric power plant (8*125MW).
Technopromexport submitted documents for its participation it tenders for modernization of Patratu Hydroelectric Project. The company also agreed for supplying hydro-mechanical equipments to subanshiri Hydroelectric Project and Thista-IV Hydroelectric Project. The OAO Engineering Centre of the Unified Energy Systems (UES), Gidroproyekt Institute, planned to Launch negotiations with the National Hydro power Corporation (NHPC) of India to determine specific cooperation projects and terms of implementing engineering services, for building the third stage of the Tehri Hydroelectric Power Complex in India. Representatives of the Moscow Machine-Building Production Association (MMPP) of Salyut enganged in negotiations with Indian companies for building an energy complex in nagpur for solid domestic waste treatment and two power plants-Chennai power generation Limited and King Hi Power.
At the Moscow Motor Show-2005, Russian company Ural and Ural India Ltd of India signed an agreement on launching a plant to assemble trucks, buses, Lorries in India. Following the agreement , the Indo-Russian joint venture Ural India Ltd opened a truck assembly factory in haldia (West bangal ) on 18 Feburary 2006. The first batch of 30 Russian truck sets has been sent from Miass, Chelyabinsk region, to Haldia for assembly.
In June 2005, top management of Gorky Gaz Automobile plant conducted negotiations with the Indian Vectra Company. A press release from Gaz reported that company considered the vectra offer concerning its role in a tender on deliveries to the Indian Army.
In addition, Tata mototrs limited is considering an opportunity to manufacture Tata Indigo model in Russia. Tata Motors already had three assembly plants in Russia-for lorries at Avtomobi li Imotory Urala (Autos and Motors of the Urals), for buses at the Volograd Volzhanin Plant, and for Kerzhenets and Moskoviya buses and pickups at the Nizhny Novgorod Samotlor.
Ural India Ltd
Ural India Ltd is a three way joint venture among UralAZ (a subsidiary of Russian engineering major RusProm Avto), Motijug Group and West Bengal industry Development Corporation of India. This plant will manufacture 40,000 heavy-duty trucks, dump and tippers that would be used by the Indian Army as well as companies operating in sectors such as infrastructure, mining, and road constructions. The vehicles would be able to carry loads up to 49 tonnes. West Bengal government allotted 300 acres of land at Haldia for the plant. These special purpose vehicles come in different capacities with wide range of performance options.
Janjra mine, which was designed and built with Soviet technical assistance in the 1980s, is still considered as one of the most promising supply units in Indian coal Industry. Russian companies like Rosuglemash and Zarubezhugol take been interest in projects to modernize mines. Concerning joint ventures in mining industries between India and Russia, Giproshakht Institute Implemented various design projects within framework of the MoU signed with central Mine Planning & Design Institute Limited (CMPDI) of India. Other Russian companies including chelyasbinsk Tractor Plant and the uralmash, tried to get a foothold in Indian markets for supplying mining equipments, excavators, and Buldozers. Recently Coal India Limited (CIL) awarded the OEM (Original Equipments Manufacturer) status to OMZ- the Russian heavy engineering major. OMZ regards India as a promising market for supplies of heavy-duty mine exacavators and drag-lines, Kolkata-based company CIL has intensified Drafting of projects for devevloping two new open-cast coal mines in Jharkhand, India. According to CIL managers, Russian mining machineries and equipments have proved their worth, and would fully comply with the technical and financial_economic requirements for developments of new open-cast mines in India.
In October 2002, during the fourth meeting of the Working Group of civil Aviation of the bipartisan Inter-Government Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation, priorities for bilateral cooperation in civil aviation between Russia and India were spelled out. Russia featured the delivery and leasing of ||-96 and Tu-204 jet liners, Ka-226, Ka-32, and Mi-172 helicopters, spare parts, ground radio, and aerodrome equipments for civilian purposes. Russian company Rosoboronexport modernized Indiaâ€™s Air Force helicopter fleet, which is 40 percent made up of Russian models, including utility Mi-8s and Mi-17s. India is also engaged in a project to build 25-seat Saras passenger plane initially undertaken under the Comprehensive Long Range Programme for Scientific and Technological Cooperation with support from the Myasishchev Design Bureau of Russia.
Finance and Banking
In 2004, during his India visit, President Mr., Vladimir Putin signed a series of documents on long-term cooperation between leading credit and financial organizations of Russia and India. The two countries signed an agreement on cooperation between Russiaâ€™s Sberbank, Vneshtorgbank, and Canara Bank of India; a memorandum on mutual understanding between Russiaâ€™s Sberbank and the State Bank of India (SBI); a memorandum of Understanding between Vneshekonombank (VEB) , Roseximbank, and the Export Credit Guarantee Corporation of India Ltd.
Later, in September 2004, Moscow hosted unvelling ceremony od Commercial Bank of India LCC, which is the first Indian bank in Russia, and a joint project of the SBI and Canara bank. Russian state-run foreign trade bank, VEB, signed an agreement with Indiaâ€™s secong largest bank ICICI. The Veb-ICICI deal has created a long-term strategy in financial support for pre-export financing and other sectors in Russia and India.
India and Russia signed a contract for up-gradation of older versions of MiG-29 fighters that have served in the Indian Air Force for almost two decades. As per the contract, the Moscow-based Russian aircraft corporation MiG will renovate engines and avionics of sixty six MiG-29 jets of India. MiG 29 series were first inducted into the Indian Air Force in June 1985. Indian miG-29s saw action during the Kargil War. The jets provide fighter escort for Mirage 2000s dropping laser-guided bombs and play a major role in maintaining air superiority.
Science and Tech
High scientific potentials of Russia and India, and identical priorities in many sectors of fundamental and applied research between the two countries coupled with stable political and defence relations, create good pre-requisites for large-scale science and technology cooperation on a long-term basis. More than 600 scientists from 190 leading research centers from Russia and India have been involved in the bilateral projects between the two countries. During his Russia visit in September 2005, the Indian Minister of Science and Technologies, Shri Kapil Sibbal agreed to set up a Russian-Indian Centre for Technology Transfer in Moscow. Further, progress and prospectus for space cooperation were discussed in detail during the India visit of high-Level Russian delegation led by Roskosmos(Russian Space Agency) from 29 Augest to 02 September 2005.
Results of Russia-India bilateral scientific and technological cooperation are of high value for both countries. India produced a polio vaccine on an industrial acale using technologies provided by the Institute of Poliomyelitis and Viral Encephalitis, Russian Academy of Medical Sciences.
US$700 Million Project
Hindustan Aeronautics Ltd. (HAL) of India has entered into a US$700 million joint venture (JV) agreement with Irkut Corporation of Russia for manufacturing 60-tonne multi role transport aircraft (MTRA). Under this joint venture, Russian companies llyushin Design Bureau of Russia and Irkut Corporation agreed to design and develop MRTA. During the agreement, it is also stated that the series production of 100-seater MRTA aircraft will be taken up by the Transport Aircraft Division of Hal at Kanpur, India. Mr.Ashok Baweja, Chairman, Hal, a said that India is in dialogue with Airbus for setting up maintenance, repair and overhaul (MRO) plant at the existing HAL airport in Bangalore.
The Fourth meeting of the Russia-India Joint Working Group on Combating International Terrorism was held in New Delhi on 24 October 2006. Indian delegation in the meeting was led by Shri K.C.Singh, Additional Secretary (International Organizations) and Counter-Terrorism Coordinator in the Ministry of External Affairs, Government of India; and Mr. Anatoly Safonov, Special Representative of the President of the Russian Federation for International Cooperation in the Flight Against Terrorism and Transnational Crime, Led the Russian delegation. Both the delegations included representative from high- level ministries and agencies.
Negotiations concerning cross border terrorism and importance of actions by all states to deny safe heaven to terrorists were held. In this context, the two countries called for unconditional implementation of UNSC Resolution 1624 on fighting incitement to terrorism. The two countries reiterated that cooperation in combating terrorism constitutes an important part of strategic partnership between Russia and India.
Russian Export and Import Figures During 2001-2006 || Russian-IndianTrade & Economic Ties
Russia-India: Geopolitical Project