The Hindu Business Line : Pact soon with Russia on building more N-plants

For closer ties: The Prime Minister of Russia, Mr Viktor A. Zubkov, with the Minister for Commerce and Industry, Mr Kamal Nath, at a meeting with Indian businessmen in the Capital on Tuesday.

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New Delhi, Feb 12 India and Russia are to consider a comprehensive economic cooperation agreement and work towards increasing bilateral trade to $10 billion by 2010, the Prime Minister, Dr Manmohan Singh, announced here on Tuesday.

Addressing the media after a meeting with the visiting Russian Prime Minister, Mr Victor Zubkov, the Indian Prime Minister announced that both the countries have agreed to diversify the trade basket and expand cooperation in sectors including minerals, diamonds, transport and infrastructure, investment and services and high technology.

“We will operationalise the joint task force to implement recommendations to increase bilateral trade,” Dr Singh said.

The Prime Minister also announced that India and Russia had finalised negotiations on reaching an agreement on cooperation in the construction of additional nuclear power plants here. Under the terms of the deal, Russia would build four additional nuclear reactors at Koodankulam in Tamil Nadu, where the construction of two 1,000 MWe light water reactors is already underway under the terms of an accord signed in June 1998 between the two countries.

Installation of the new reactors, however, is likely to commence only after the 45-member Nuclear Suppliers Group (NSG) lifts a three-decade old embargo on nuclear trade with India. An NSG waiver is unlikely to be lifted until the Indo-US civilian nuclear deal is ratified.

Pointing out that there was vast potential for mutually beneficial cooperation in the areas of hydrocarbons, Dr Singh expressed the hope that the on going discussions between the oil and gas companies of both countries Russia would result in finalisation of joint projects not only in India and Russia but also in third countries.

India-Russia forum

Earlier, addressing the opening session of the India-Russia Forum on trade and investment, the Minister for Commerce and Industry, Mr Kamal Nath, said that initial discussions had shown growing interest of Russian companies in the Indian market, especially in electric power engineering, metallurgy, car and aircraft building and infra structure development.

“A number of Russian entrepreneurs are also studying the domestic telecom market and are interested in investing in manufacturing of telecom equipment,” Mr Nath said.

Pointing out that Russia also held enormous potential for Indian companies, the Minister said that among the sectors that offered potential included pharmaceuticals, tea and tobacco. The Minister also announced that by March this year Tata Consultancy Services intends to open an office in Russia and others were expected to follow.

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