Russia-India relations and economic deals

Russia is waiting for India to identify the location of a new nuclear power plant where six power units of 1,200 mw each will be constructed under an Indo-Russian agreement, a senior Russian official said today.

“We are waiting for the Indian party to identify the location for the new NPP. These six units will be 1,200 mw each of VVER (Water-Water Energetic Reactor) type,” Vladimir A Angelov, Director for Projects in India, State Atomic Energy CorporationROSATOM , said.

Addressing a select media conference of Indian journalists at the ongoing nuclear conference ATOMEXPO 2016 here, Angelov referred to the 2014 Strategic Vision for Strengthening Cooperation in Peaceful Uses of Atomic Energy between India and Russia wherein the two countries had decided on setting up of 12 units over the next two decades.

According to the agreement, “both sides will strive to complete the construction and commissioning of not less than 12 units in the next two decades…towards this objective, the Indian side agrees to expeditiously identify a second site, in addition to Kudankulam(six units), for the construction of the Russian-designed nuclear power units in India.”

Rosatom is involved in the design and execution of six nuclear reactors in the Kudankulam in Tamil Nadu.

Responding to a question on the Kudankulam Nuclear Power Plant (KNPP) in Tirunelveli in Tamil Nadu, Angelov said that it had generated 1,006 mw of power yesterday as against the capacity of 995 mw.

The reactor could generate upto 1,020 mw and “it is very important that we can generate that 25 mw of power for the Indian people,” he said.

Yesterday, a Russian firm designing the Kudankulam Nuclear Power Plant said the general framework agreement for the plant’s Units 4 and 5 would be signed this year while negotiations were underway over configuration of Units 5 and 6.

“We are planning to sign the general framework agreement for Units 4 and 5 this year,” ASE Group President Valery Limarenko had said.

http://economictimes.indiatimes.com/industry/energy/power/waiting-for-india-to-identify-location-for-new-npp-russia/articleshow/52521454.cms

https://in.rbth.com/economics/cooperation/2016/06/09/india-joins-mtcr-space-missile-cooperation-with-russia-easier_601593


Members of the Missile Technology Control Regime (MTCR), a key anti-proliferation grouping which includes Russia, have agreed to admit India this week. This should enable easier space and missile collaboration with Russia, which could not supply cryogenic engines and other dual use technology missiles to India, because it was bound by MTCR norms.

India has become the 35th country to be admitted to the Missile Technology Control Regime (MTCR), a major international anti-proliferation group of which Russia is a key member.

India’s admission did not have to wait for the formal plenary meeting of the MTCR due in Seoul, (Republic of Korea) later this year. The current Chair of the MTCR, The Netherlands, took the decision after no member country raised objections to India’s membership.

According to sources in the Indian government, this will help India and Russia raise cooperation in space technology. It will also enable India and Russia to sell the supersonic ‘BrahMos’ missile, which has a range of 290 kilometres, to third countries. India and Russia co-produce the Brahmos, in a joint venture.

Such a development would raise India’s profile as an arms exporter. The sale of the ‘BrahMos’ missile was among the topics which came up during Indian Defence Minister Manohar Parikkar’s visit to Vietnam earlier this week.

The MTCR is an informal and voluntary partnership among member countries to prevent proliferation of missile and unmanned aerial vehicle (UAV) technology which can carry a 500 kg payload up to 300 kilometres.

Admission to the MTCR would open the way for India to buy high-end missile technology, and state-of-the-art surveillance drones, which it seeks for border security. Membership of the MTCR would also require India to comply with rules to prevent arms races from developing.

India seeks NSG entry, accedes to HCOC

India also signed on to the Hague Code of Conduct (HCOC) against Ballistic Missile Proliferation last week, the final step before its acceptance in the MTCR. The HCOC is intended to supplement the MTCR. India earlier consistently declined to sign the HCOC, which is not legally binding and does not call for the destruction of any missiles. It is an agreement between States on how they should “conduct” their trade in missiles, and its membership is open to all the countries in the world.

Russia, which signed on to the MTCR in 1995, was among the earliest members of HCOC.

The MTCR is one of four international non-proliferation regimes from which India had been excluded, the others being the Nuclear Suppliers Group (NSG), the Australia Group (AG) and Wassenaar Arrangement (WA).

New Delhi also applied formally last month to join the NSG, a 48-nation club which controls trade in commercial nuclear technology. The NSG was originally set up in response to India’s first atomic weapons test in 1974.

Russia backs India’s bid to become an NSG member, and has said it was ready to assist in arriving at a “positive decision” for India to join the elite nuclear commerce club.

Chinese hurdle

However, despite strong support from Russia, the United States, France, Japan and most other NSG members for its impressive track record in non-proliferation of nuclear and missile technologies, India joining the NSG will be difficult because China is a member and also seeks admission for Pakistan which, according to an analyst, is a “Nuclear Weapons Terror Proliferator”.

The Indian Ministry of External Affairs has confirmed that it had launched a high-power campaign aimed at “engaging all members of the Nuclear Suppliers Group” in the run-up to the extraordinary plenary that NSG will host in Vienna on June 9. The plenary is likely to consider India’s application to become a member of the group.

“This [NSG membership] has been an objective that we have pursued for many years now”, said Indian Foreign Secretary S. Jaishankar. “We believe we made a lot of progress and that has led us to formally apply to NSG some days ago. We are engaging all NSG members regarding this issue,” said Jaishankar, at a media briefing last Friday.

India’s quest of NSG membership featured prominently during the visit of Prime Minister Narendra Modi to Switzerland, the U.S. and Mexico part of his five-nation trip which began on Saturday. Both Switzerland, which was earlier opposed to India joining the NSG, and the USA have declared their support for India’s bid.

A source in the government said Russia was among the countries which was “actively pushing” India’s membership and was “hopeful” New Delhi could be admitted at the NSG plenary meeting in Seoul on June 23 and 24.

“If China is the only country opposed to India’s entry, then I do not think Beijing will oppose India’s admission to the NSG,” the source said.

“South Korea happens to be the chair of NSG meetings this year. It is high time that India gets invited to NSG as it has an impeccable track record,” the Indian foreign secretary said. “What matters to NSG members is the track record of an applicant. Getting us into the NSG will help facilitate nuclear trade with us,” Jaishankar said, arguing that India’s growing energy needs require a re-ordered nuclear supply regulation.

“The merits of our joining the NSG derive from the fact that we have a substantial expansion of our nuclear energy segment ahead of us… I mean if there are norms and practices in the world, proliferation is not an irrelevant concern to it. I think we have a very solid record with which much of the world is comfortable,” added the foreign secretary.

http://rbth.com/business/2016/04/12/north-south-corridor-from-russia-to-india-to-compete-with-suez-canal_584017

A new transport project under development between Russia, Azerbaijan and Iran and on to India will shorten shipping times and costs by cutting out sea routes and the Suez Canal.


[​IMG]
The North-South Transport Corridor involves the use of marine, rail and road transport. Source: Sergey Venyavsky/RIA Novosti

Following talks with the foreign ministers of Azerbaijan and Iran, Russian Foreign Minister Sergei Lavrov has revealed that Russia has agreed to begin substantive studies on the implementation of the North-South Transport Corridor, part of which will pass along the western coast of the Caspian Sea, from Russia to Iran through Azerbaijan.

“This involves working with the participation of the [different participants’] ministries of transport, which have to look at the technical and financial parameters of such a project. This also involves interaction between the customs and consular services, and we have agreed on this today,” said Lavrov on April 7.

“We believe that these projects will speed up cargo transit. We are discussing the final details,” said Iranian Foreign Minister Mohammad Javad Zarif.

“We believe that this cooperation serves the interests of the peoples of Iran, Azerbaijan, and Russia – and, of course, the interests of the entire region,” he added.

Getting goods to their destination in half the time
The transport corridor from Russia to Iran through Azerbaijan is an important part of a larger north-south project that was stalled in the mid-2000s due to the imposition of Western sanctions against Iran. With the lifting of the restrictions on Iran, this project has again become relevant.





The North-South Transport Corridor is a route from St. Petersburg to the port of Mumbai in India, with a total length of just under 4,500 miles (7,200 kilometers). The goal of this corridor is to transport goods from India, Iran and other Persian Gulf countries to Russia via the Caspian Sea and on towards Northern and Western Europe.

Currently the flow of goods from India towards the European part of the Russian Federation is provided by maritime transport. From St. Petersburg, cargo has to sail around the entire western part of Europe and through the Suez Canal, resulting in an estimated travel time from Jawaharlal Nehru Port (Mumbai) to Moscow of about 40 days.

The new route – from St. Petersburg to Moscow, then to Astrakhan (Russia), Baku (Azerbaijan) and Bandar Abbas (a port city on the Persian Gulf in southern Iran) to Mumbai – is multimodal.

According to Russian Railways Logistics, the project involves the use of marine, rail and road transport, and will cut transport times by 50 percent. In the long term, this time can be reduced to just 14 days. The new route will eliminate the need to transport goods through the Suez Canal, which is not only overloaded, but also very expensive.

In February of this year, Russian Railways, Azerbaijan Railways, and ADY Express, within the framework of the North-South project, agreed to attract cargo flows to the Azerbaijani and Russian railway networks through the organization of transport along the India-Iran-Azerbaijan- Russia route, and vice versa.

An agreement on the construction of the transport corridor, which should be completed in 2017, was signed by Russia, India and Iran in 2000, and was ratified in 2002.

Rail links the key to better relations


“In addition to the sea route from St. Petersburg, cargo travels to Iran also through ports in Turkmenistan and Kazakhstan – these routes being convenient for consignors and consignees located in the Urals and Siberia. In addition, there is an option of transportation via the road network of Azerbaijan,” said Ivan Andryevsky, chairman of the board of directors of the 2K Engineering Company.

“However, direct rail transportation means the reduction of travel times, and thus provides good prospects for the development of trade relations, not only between Russia and Iran, but also between the countries of Eastern Europe and Iran,” he added.

“We are now shipping cargo to Iran either across the Caspian Sea or across the ocean to the south of Iran – via St. Petersburg or via Novorossiysk, whichever is more convenient for the shippers,” said Alexei Bezborodov, head of the Infranews agency, explaining the relevance of the new route.

“However, for Iran, it is actually more profitable to receive loads in the north – either from the Caspian Sea, or by rail, because the majority of the people in Iran live in the northern part of the country. In the south there is the Port of Bandar Abbas, and the oil fields, but few people live down there,” he said.



To realize this route along the west coast of the Caspian Sea, a new railway line will have to be built linking the Azerbaijani city of Astara to the Iranian cities of Astara, Rasht, and Qazvin.

Construction of the Qazvin-Rasht section was completed in 2015, but construction of the Rasht-Astara section is only at the development stage.

“The Qazvin-Astara railway line is an infrastructure project experiencing the typical delays. The main road route passes through the territory of Iran. The section was planned for completion in 2015, but then was postponed to 2016,” said Ivan Andryevsky.

However, the construction work continues and on April 20, a railway bridge between Azerbaijan and Iran will be opened, the Azerbaijani Foreign Minister Elmar Mammadyarov announced on April 7. He also confirmed that the Azerbaijani and Iranian rail networks should be linked before the end of 2016.

“This is a complex infrastructure project, with many tunnels, bridges and difficult mountainous areas. Therefore, problems with the implementation of this project were to be expected. However, the contractors are saying that this route is now at a high level of completion, so we can expect the railway to be completed, and in the near future at that,” said Andryevsky.

According to various sources, the estimated capacity of the railway, during the first phase, should be around 4-10 million tons of cargo, and this will increase in the future to 15-20 million tons per year.

Affordable and in everybody’s interests
As for the pricing policy, the question here is not in the fees charged, according to Alexei Bezborodov.

“There are no political problems here either. The sanctions against Iran were removed. For our Southern and Volga regions, Azerbaijan is quite an appropriate avenue for trade with Iran,” he said.

From an economic point of view, the project can be implemented quickly and without significant costs, because the infrastructure has already been built.

“The railway line on the territory of Iran itself is not yet complete, but that is no hindrance to us, we can use trucks for transportation there. In Azerbaijan, everything has already been built. All investments have been made during the last 15 years,” said Bezborodov.



In fact, all that remains is simply to launch the new route, to agree on the logistics, fees, customs and other procedures, on which the three countries now intend to work on in detail.

The new corridor is important for Iranian and Russian plans to increase the volume of bilateral trade. Iran is primarily interested in buying Russian grain – almost the entire volume of Russian grain exports now heads to Iran.

However, in terms of diversifying the range of products, train also allows the transport of food products, including vegetables and fruits, as well as industrial goods, oil and oil products. For example, Russia could start exporting vehicles to Iran, where around 130-150,000 Chinese cars are now being sold annually.

Given the large number of joint projects, in particular in the nuclear sphere, cargoes going from Russia and back could easily see the new route reach full capacity.

A brilliant project. An interesting quote from it is "Affordable and in everybody’s interests". Not quite.

In particular, Washington will perceive it not just a a boost for Iran but as a serious move in the boosting and consolidation of the economic power of the countries in the Euro/Asian landmass. This is not in their strategic interests. Colour revolution in Azerbaijan coming up?

The outreach is important as China continues to maintain that "NSG members remain divided" on the issue of membership.

Back from his visits to Washington, Geneva and Mexico City to lobby for India’s entry into the Nuclear Suppliers Group (NSG), Prime Minister Narendra Modi is now setting his sights east: asking Russia for help with the countries still holding out, even as he prepares to meet with President Vladmir Putin and Chinese President Xi Jinping at the SCO (Shanghai Cooperation Organisation) summit later this month.

The outreach is particularly important as China continues to maintain that “NSG members remain divided” on the issue of membership, claiming that “many countries within the group share China’s stance.”

Officials expect a final decision may not come till the eve of the NSG meeting in South Korea on June 24, when the Prime Minister is expected to meet Mr. Xi at the Tashkent SCO meet that is also discussing India and Pakistan’s membership on June 23-24. He is also scheduled to meet Kazakh President Nazarbayev on the issue.

Significantly, Mr Modi called up Mr. Putin on Saturday, wishing him on Russia’s national day and confirming the meeting at the SCO.

In a statement, the Kremlin said: “The discussion focused on practical issues of the two countries’ cooperation, including preparations for the top-level contacts to be held shortly.”

While refusing to confirm whether “the practical issues” included India’s NSG membership, sources in the Ministry of External Affairs (MEA) said Russia was always “very supportive” of India’s NSG aspirations. But analysts say Mr Modi may be hopeful of more: that Russia will use its influence with countries like Kazakhstan and Turkey, who are not yet convinced to back India, and most importantly, as a bridge with China, which has taken a tough position.

Bridge to China

“Increasingly, Russia is moving in as a mediator between India and China,” says former Ambassador M.K. Bhadrakumar, pointing to the Russia-India-China meeting External Affairs Minister Sushma Swaraj attended in Moscow in April, where the three countries hammered out an acceptable formulation on the contentious South China Sea. Since then, India omitted the explicit reference to the South China Sea in the joint statement with the U.S. last week as well. “It all coming to a climax at the SCO summit,” Mr. Bhadrakumar said

http://www.thehindu.com/news/national/modi-seeks-moscow-route-to-china-for-nsg-entry/article8721366.ece

According to the Indian ambassador, the country wishes to move away from a simple ‘buyer-seller’ relationship with Russia

ST. PETERSBURG, June 16. /TASS/. India wants to manufacture Russian arms on its own territory, Ambassador Extraordinary and Plenipotentiary of the Republic of India in the Russian Federation Pankaj Saran said on Thursday.

"Defense cooperation has been a traditional pillar of our cooperation," Saran said at the St. Petersburg International Economic Forum. "India today wants to move away from a simple ‘buyer-seller’ relationship with Russia to relationship in which we co-produce, we manufacture and essentially we make in India," he added.

"And we want Russia’s help to manufacture and to organize our defense industry. And efforts are on in this direction, and the initial indications are very promising. A large number of Indian public companies, public sector companies are showing great interest in partnering with Russian defense enterprises. And if we move in that direction, then certainly we are again looking at the new stage of our cooperation in the defense field," Saran concluded.


More:
http://tass.ru/en/defense/882428

New Delhi: The first batch of nuclear fuel pellets — over 60 tonnes — to be supplied to India by Russia is expected to be delivered by the end of July, the Russian suppliers have said.

The pellets are expected to be delivered 26-29 July, said officials from TVEL, the fuel company of Russian atomic power corporation Rosatom.

The fuel is meant for the pressurized heavy-water reactors already functioning in India.

"Technical acceptance of the first batch of pellets to be supplied in 2016 to the Indian Nuclear Fuel Complex (NFC) has been successfully completed at the Machine Engineering Plant of TVEL," Andrew Pyrinov, head of the department of technical control of the Machine Engineering Plant, told IANS.

Technical Acceptance is the procedure to check if there are any defects in products. The extensive programme involves checking of all technical documentation by the buyer, which in this case is India.

The programme included the presence of NFC representatives during the production of fuel pellets and storage of finished products.
Pyrinov said the acceptance was completed without any inquiries from the Indian side.

A long-term contract for the supply of fuel pellets for the Indian nuclear power plants was concluded on February 11, 2009 in Mumbai between JSC TVEL and the Department of Atomic Energy, Government of India.

The Russian company was the first to sign a long term contract to supply nuclear fuel to India's PHWR reactors after the Nuclear Suppliers Group (NSG) had removed the restrictions on the supply of uranium, reactors and technology to the India on 6 September, 2008.

The first delivery of nuclear fuel to the Nuclear Fuel Complex in Hyderabad (India) took place in spring 2009. The fuel pellets made in Elektrostal, Russia are used in Indian nuclear reactors.

The Nuclear Fuel Complex was established 1971 as a major industrial unit of Department of Atomic Energy, for supplying nuclear fuel to the plants.

http://www.firstpost.com/world/first-batch-of-nuclear-fuel-pellets-from-russia-to-arrive-in-india-in-july-end-2869082.html

Russia and India have agreed on the number and type of warships involved in the joint naval exercises.

Over 6,500 Russian servicemen, 15 warships and over 10 aircraft will hold military drills in the Far East Kamchatka Territory, the Eastern Military District said Monday

KHABAROVSK (Russia) (Sputnik) — The Russian Pacific Fleet and the Indian Armed Forces have agreed on the number and type of warships that will be involved in the joint Russian-Indian naval exercises, Indra, in December 2016, a spokesman for the Russian Defense Ministry’s Eastern Military District said Wednesday.

"The Pacific Fleet and the Indian Armed Forces have agreed that the drills will involve a Project 1155 anti-submarine destroyer, a Project 956 fleet destroyer, an anti-submarine helicopter Ka-27, a tanker and a fleet tug from the Russian side. The Indian side will provide for the drills a Kashin-class destroyer, a corvette, a tanker and a shipboard helicopter," Alexander Gordeev told reporters.

He noted that the final composition of forces and means involved in the drills would be specified during the final planning conference, which is scheduled for October.

The Indra exercises, first held in 2003, are tasked with boosting cooperation and interoperability between the Russian and Indian navies. In 2016, some 500 servicement are expected to be engaged in the drills, according to the Russian Defense Ministry.

http://sputniknews.com/military/20160706/1042500693/russia-india-navy-drills.html

Russia has formally welcomed India’s much awaited membership in the Missile Technology Control Regime (MTCR). India formally joined MTCR as the 35th member on June 27 with Russia besides USA and France strongly supporting India’s case.

“For many years the Russian Federation advocated the accession of India – a state with advanced missile and space capabilities, an effective system of export control and adherence to the aims and objectives of non-proliferation – to this multilateral export control regime.

We are convinced that with the entry of India into MTCR there will be given additional impetus to global efforts to counter the proliferation of means of delivery of weapons of mass destruction and related materials, increased the credibility and relevance of the regime itself,” according to a statement by the Russian Foreign Ministry.

“Ready for a fruitful and constructive cooperation with our Indian friends in this format,” noted the Ministry statement.

India-Russia cooperation in space and missile program and other high technology items are expected to grow following India’s accession to MTCR. Supersonic missile Brahmos — Indo-Russian joint collaboration — could now be easy for Delhi to export following MTCR membership.

http://economictimes.indiatimes.com/news/defence/russia-formally-welcomes-indias-mtcr-membership/articleshow/53127140.cms

http://rbth.com/news/2016/07/10/russia-looking-at-participating-in-indias-make-in-india-program-minister_610353

Russia is looking at taking part in India’s industrial program Make in India, Russian Minister of Industry and Trade Denis Manturov told TASS on July 10 ahead of the Innoprom-2016 exhibition, where India is an official partner.

"The ministry of industry and trade commends the Indian government’s measures to reform the country’s economy. The ministry considers its participation in the program Make in India as a new point of growth in terms of cooperation, including industrial cooperation. This program is meant to make India a leader of global industrial production," he said.

He said that currently the two countries are cooperating in such sectors as metallurgy, aircraft-building, car0building, chemical industry and other high technology sectors.

"Currently, Russian exports to India is made up of basically aerospace vehicles and equipment, ferrous metals and articles made of them, components for nuclear energy facilities, a wide spectrum of articles of military technical cooperation," Manturov said. "India exports to Russia mainly pharmaceuticals, machine-building products, coffee, tea, tobacco, spices, garments. Russia and India are partners in the area of peaceful use of nuclear energy. Cooperation in the hydrocarbon sector is a major area of possible cooperation between the two countries."

The Make in India program was initiated by the Narendra Modi government in 2014. In January 2015, Indian Defense Minister Manohar Parrikar invited Russian defense-sector companies to take part in that initiative. The invitation was voiced during an Indian visit by Russian Defense Minister Sergei Shoigu.

Under this project, India plans to attract investment to 25 economic sectors - from tourism to mining. The program offers considerable privileges to foreign investors, including in the defense sectors.

Source: Tass.com

https://in.rbth.com/news/2016/07/11/russia-interested-in-introducing-sukhoi-superjet-100-to-indian-market_610657

Russia is interested in introducing the Sukhoi Superjet (SSJ100) civil passenger jets to the Indian market, Industry and Trade Minister Denis Manturov said Monday.

"There are major areas where we are looking forward to cooperation, in addition to the defence-industrial complex, nuclear industry. For example, there were preliminary campaigns and industrial areas where components could be placed for the production of our civilian airliners, in particular the MC-21. We are also interested in the SSJ100's emergence in the market. We wanted to demonstrate the aircraft to Indian colleagues," Manturov told reporters.

https://in.rbth.com/economics/cooperation/2016/07/18/russia-ready-to-make-in-india_612741


uploading pictures



Yekaterinburg hosted INNOPROM, an international exhibition of industry and innovations, between July 10 and 14, the seventh such exhibition and the first one with such large-scale Indian participation.

A total of 638 companies from 17 countries attended the exhibition. The Indian representation was the largest, because it was the INNOPROM partner country this year. India’s delegation included members of the government, the Engineering Exports Promotion Council (EEPC India), the Association of Machine Tool India (AMTI), the Indian Embassy in Russia, and representatives of five leading industrial states (Maharashtra, Gujarat, Jharkhand, Rajasthan and Andhra Pradesh). Nirmala Sitharaman, Minister of State for Commerce and Industry, headed the Indian delegation.

As part of their international exposure 112 companies showcased their products. The largest stands belonged to the SUN Group, SRB-International, Bharat Heavy Electricals Ltd, Heavy Engineering Corporation Ltd, Power Grid Corporation of India and National Hydroelectric Power Corporation (NHPC). 70% of the exhibitors were small and medium-sized
“We are pleased to participate in this magnificent exhibition, to become an INNOPROM partner country. For India, it is a great honour,” said Sitharaman. “My colleagues and I are here to develop our long-term economic and commercial ties with Russia, based on a long-standing friendship. In particular, we are ready to cooperate in the field of hydrocarbons, production of mineral fertilizers, the creation of transport corridors, and construction of ‘smart cities’", she said.

Sitharaman pointed out that Russia and India have pledged to raise the bilateral trade turnover from 9.5 to 30 billion dollars by 2025, and mutual investments from 11 to 15 billion dollars. Judging by the current structure of imports and exports, Russian business still prefers to supply industrial products to India rather than implement the technology here. The governments hope to break this trend.

Russia has become the first foreign country included in the ‘Make in India’ programme. The first such project was a joint venture between the state-owned corporation Rostec and Hindustan Aeronautics Limited (HAL) for the assembly of the Ka-226 combat helicopters.

Denis Manturov, head of the Russian Ministry of Industry and Trade, said the Soviet Union built a large number of enterprises in India in the field of transport engineering, power engineering, metallurgy, nuclear industry, and Russia today is ready to participate in their modernization. The horizon for cooperation in high-tech sectors is even wider, he said. Russia hopes to place the production of components of vessels for civil aviation in India, in particular, for the MS-21. It is possible that the Sukhoi Superjet 100 (SSJ100) aircraft will also appear in the Indian market.

Another promising area of cooperation is the regional link. At this level, opportunities for cooperation between small and medium-sized businesses are the widest, and there are successful examples of such cooperation. At INNOPROM, Maharashtra concluded an agreement with the Sverdlovsk region to cooperate in the trade, economic and humanitarian spheres. Special emphasis will be placed on mining,

“We have many projects in the mining industry, and Russian engineering companies are going to help realize the full potential of the region in this area”, said Davendra Fadnavis, the Chief Minister of Maharashtra state.

The Chief Minister of Rajasthan state, Vasundhara Raje, admiring the quality of the Ural forests, said that she was keen to exchange experiences in forest products and forest reproduction. The Sverdlovsk region will also join in work on the problem of providing drinking water to Rajasthan.

The total value of the agreements signed is yet to be calculated.

Uralvagonzavod and the Kalyani Group have agreed on joint production of self-propelled artillery within the framework of the ‘Make in India’ programme. SRB-International has signed a memorandum with several Russian producers. The first one of these involves delivery of drilling equipment to India, the second involves delivery of industrial fans for mines and the underground, and the third involves joint participation of SRB and the Ural Plant of Chemical Engineering (Uralkhimmash) in Engineers India Limited Oil and Gas Group tenders.

SRB will open an authorized service centre in India in 2017 with another partner, Ural Heavy Machinery Plant (Uralmash), which will provide customers with spare parts for mining and metallurgical machinery.

Russian Railways plans to be part of the large-scale modernization of India’s rail network to increase the speed of movement to 250 kilometres per hour. The Railways have already joined the ‘Make in India’ programme, the formation of freight and passenger corridors, introduction of modern management systems and security based on satellite navigation.

India aims to create 15000 MT uranium reserve to fuel its nuclear reactors.

New Delhi (Sputnik) — Russia is the biggest contributor to India's 'strategic uranium reserve'. India's Prime Minister's Office, in a written reply to Parliament, said "Russian firm JSC TVEL Corporation is supplying uranium to India.

In 2015-16, India imported 303.78 megatons of Natural Uranium Di-oxide Pellets while 42.15 megatons in the form of Enriched Uranium Di-oxide Pellets from Russia. In 2014-15, imports from Russia totaled 296.54 megatons."
Apart from Russia, Kazakhstan and Canada also supply uranium to India. India imported 250.74 megatons of Natural Uranium Ore-Concentrate from the Canadian firm Cameco in 2015-16. No consignment arrived from Kazakhstan during the same period.

Sources say that India is planning to create 15,000 megatons of strategic uranium reserve for its nuclear reactors. Apart from the Hyderabad Nuclear Fuel Complex, India is also building another nuclear fuel complex in its western part. India has 21 working nuclear power reactors, with an installed generating capacity of 5,780 MWe. Out of these, 13 reactors comply with International Atomic Energy Agency (IAEA) safeguards and are eligible for imported fuel.

Apart from these 21 nuclear reactors, Dr Jitendra Singh, Minister of State for the Prime Minister's Office says, "the Kudankulam Unit-2 also attained first criticality (start of controlled self-sustaining nuclear fission chain reaction in the reactor for the first time) on July 10, 2016. This unit also uses imported fuel."

http://sputniknews.com/asia/20160720/1043399493/uranium-reserve-india-russia.html

http://tass.ru/en/economy/892036


MOSCOW, August 2. /TASS/. India might start production of components for nuclear fuel reactors of Russian design in the next 10 years, Vice-President of the Tvel - fuel company of Rosatom Oleg Grigoriev told TASS on Tuesday.


"Work on localization should be definitively linked to the schedule of expanding reactors of Russian design in India. Therefore, if all current plans for Russian units in India are implemented, I hope in the next 10 years first components produced in India will be used in fuel for Indian nuclear power plants," Grigoriev said. He noted that it should be preceded by adaptation of the law, and personnel training.

"The first steps have already been made," he said.

"Of course, a lot will depend on regional specifics and peculiarities," he said.

Grigoriev added that, despite the guarantee of uninterrupted supply of Russian nuclear fuel, Tvel is ready to support the efforts of Indian partners in the localization of part of its production in India.

"We already have experience in conversion. We have repeatedly carried out economic calculations and estimates for volume of fuel to keep the plant cost-effective. The number is around 10-12 energy blocks," he said.

Grigoriev said that the question of localization of fuel assemblies - is not a current issue, but a matter for the medium term.

NPP equipment localization roadmap
Russia and India will draft a roadmap for localization of nuclear power plant (NPP) equipment shortly, Oleg Grigoryev said.

"A detailed localization roadmap we are to follow will be developed and agreed by the parties in coming future," Grigoryev said. "Reasoning from our experience and understanding of stages, the work should most probably start from localization of components for fuel assemblies. Final decision on localization depths, its timing and sequence is the subject matter of agreement with Indian partners," he added.

Russian offers India advanced nuclear fuel for Kudankulam NPP
According to Grigoriev, Russia is ready to transfer Kudankulam Nuclear Power Plant (NPP) to the advanced type of nuclear fuel TVS-2M with participation of Russian specialists as soon as possible.

"We are ready to transfer Kudankulam NPP to the fuel as soon as possible in compliance with all the requirements of the Indian regulator for safety and security of fuel assemblies," he said.

Grigoriev noted that the continuous improvement of nuclear fuel is one of the main competitive advantages of Russia in the nuclear field, and the company is investing "significant resources and efforts in science" for further developments.

According to him, at the time of the decision to construction the first reactors of Russian design in India, UTVS design was the most correspondent to the India’s needs. The design is exported until this day.

Now the Russian side offers Indian partners a more modern design of nuclear fuel - TVS-2M with improved economic and technical characteristics.

"The only restriction for this project is time - UTVS fuel has been developed under the agreement of the parties for the next 3-4 years. As soon as it is used up, the station will use the new type of fuel," Grigoriev said, adding that in case the Indian side agrees with another project formula, transition to the new fuel will be faster.

"In any case, we are interested. Our strategic priority is to fully satisfy the requirements of our customers. In transitioning to TVS-2M, the customer will not face any additional complications. We offer our partners only verified and reference nuclear fuel that previously has passed all stages of testing in Russia. This type of fuel assemblies is no exception," he said.

https://www.rt.com/business/355411-india-russia-nuclear-reactors/

Five more nuclear reactors, which would generate 1,000 MW each, are being planned at the existing Kudankulam Nuclear Power Plant, Prime Minister Narendra Modi said on Wednesday as he dedicated the first unit of the mega power plant here along with Russian President Vladimir Putin.

Doing the honours through video conferencing in New Delhi and Moscow respectively, Mr Modi and Mr Putin termed the nuclear plant as a “fine example of special and privileged Indo-Russian strategic partnership”.

“And, it is only a start of our collaboration in this field. It is perhaps not commonly known that at 1,000 Mega Watt, Kundankulum 1 is the largest single unit of electrical power in India. In years ahead, we are determined to pursue an ambitious agenda of nuclear power generation. At Kudankulum alone, five more units of 1,000 MW each are planned. We plan to build a series of bigger nuclear power units,” the Prime Minister said in his address.

Mr Putin said the unit has been built using most advanced Russian technology incorporating highest safety standards while Modi asserted that India was determined to pursue an ambitious agenda of nuclear power generation.

The Kudankulam 1 has been jointly built by the Nuclear Power Corporation of India and Russia’s Rosatom and it had started generating electricity in 2013. Anti-nuclear activists and local people had protested against the project claiming it was unsafe. The agreement for the project was inked by former Prime Minister Rajiv Gandhi and then Soviet Union President Mikhail Gorbachev in 1988 but actual work on the ground started only in 1997. The KNPP uses Russian VVER type reactors based on enriched uranium and its second unit was expected to start later this year.

Being at the crossroads of politics, diplomacy and commerce, Russia-India defence cooperation has always occupied a special place in the entire structure of bilateral relations.

On the one hand, the supply of Russian arms to India is a clear indicator of intensive political cooperation between the two countries, as well as a high level of trust between New Delhi and Moscow.

On the other hand, against the backdrop of rather modest economic cooperation, trade in military goods fills the relations of strategic partnership with real commercial content.

After India surpassed China as the largest buyer of Russian defence products in 2007, New Delhi has remained the largest foreign customer of the Russian defence establishment. On average, according to estimates, India makes up almost 35% of Russian arms exports.

In the 1990s, Indian orders gave a powerful impetus to the innovative development of the Russian defence industry. India was one of the first to shift to a new paradigm of demand on the arms market when non-standard mass production systems were ordered, and arms were made to order according to individual customer requirements. The Indian armed forces were able to articulate very high, but realistic requests.

While projects such as the Su-30MKI fighters, carrier-based MiG-29K fighters, Talwar-class frigates were being executed, Indian military requirements stretched to the limit the design and technological capabilities of Russian developers and manufacturers. However, they did not exceed their capabilities, thereby creating weapons systems required by India within a reasonable time.

Indian buyers at the time ran high, but reasonable technical risks. As a result, the Indian and then the Russian Armed Forces received first-class weapons systems, which still remain modern today. No other Russian arms importer has had such a positive innovation impact.

The vast majority of India’s economic, industrial, technological and military strengthening also meets Russia's national interests.

China, for example, which was the leading buyer of Russian weapons till 2007, usually bought either the standard system, or the systems, that had passed conservative modernization. The only segment where Chinese demand was most concentrated was modern solutions in air defence, for which China has become the first customer for the C-300PMU-2 and is likely to be the first foreign operator of the C-400.

Russia is a significant source of weapons and technologies for India. Russia has always been willing to transfer to India not just finished products, but production technologies. The re-assignment of licences and organization of production of defence products of Soviet and Russian design is not a recent phenomenon, but a practice that began in the 1970s, when licenced production of India’s MiG-21s was organized.

In this sense, Russia has been implementing the ‘Make in India’ a policy for nearly half a century. It is not altruism on Russia’s side. The fundamental basis of Moscow’s attitude to the question of the transfer of military technology to India is the phenomenal complementarity of the Russian and Indian military-political interests.

India’s maximum economic, industrial, technological and military strengthening meets Russia's national interests. In addition, Russia has been cooperating with India not only in the segment of conventional tactical weapons, but also in sub-strategic and strategic systems. This cooperation is of vital importance for India’s development of military capabilities and its transformation into a global military player.

The classic examples of this are, of course, the leasing of the Soviet and Russian multipurpose nuclear submarines and the construction for the Indian Navy of the ‘Vikramaditya’ aircraft carrier. This kind of cooperation can and should develop.

The preservation of a large group of non-nuclear submarines is a closed chapter for the Indian Navy. When economic opportunities allow, military needs and geography dictate the need to establish a nuclear submarine fleet. After all, attack nuclear submarines and aircraft carriers, along with the weaponry provide dominance in the seas, while the conventional submarine is rather a solution for defensive tasks. There is no doubt that Russia will provide India with all the necessary assistance in the building of nuclear submarines.

Finally, unlike some other major players in the Indian defence products market, Russia has consistently limited itself in the deployment of large-scale military-technical cooperation with Pakistan. Neither the US, supplying Pakistan with the modern and effective F-16 fighter, which is the strike core of the Pakistan Air Force, nor France, whose submarines form the basis of Pakistan's submarine fleet, take into account the concerns of India's rising military power vis-à-vis this artificial and unstable state.

Russia's policy in relation to the supply of arms to Pakistan looks especially contrasting against this background. Islamabad is hugely interested in Russian weapons, including the cutting-edge systems such as the Su-35 fighter. However, one can say with confidence that Russia will never agree to the transfer of arms to Pakistan, which could disrupt the existing balance of forces in the region.

What are the prospects for Russian-Indian military-technical cooperation? Most likely, it is an increase in the number and the scale of joint projects on the basis of risk-sharing.

Several projects of this kind are already being implemented. Among them are the staggeringly successful BrahMos project, the unsuccessful MTA, and the recently launched FGFA. The Su-30MKI program is very close to such projects.

At the moment, however, both countries face the task of carrying out the second generation joint projects, which were initially completed with the harmonized requirements of the armies of both countries. Financed on a parity basis, those were bought by both the Indian and Russian military, and are jointly marketed in the third countries.

It is about creating a common element of the Russian-Indian military products market, and it is a far more ambitious goal than the ‘Make in India’ policy, in the paradigm that Russia and India have been operating for five decades.

We can say with certainty that the most promising model is the Make in India 2.0, under which India is not a recipient of technology, but an equal partner in building new knowledge, competencies and products.

Ruslan Pukhov is head of the Centre for Analysis of Strategies and Technologies, a member of the Public Council under the Ministry of Defence

source-http://in.rbth.com/economics/defence/2016/08/17/indias-needs-helped-power-russian-military-innovation_621691

Minister Narendra Modi on Saturday reaffirmed India’s time-tested ties with Moscow when Russian Deputy Prime Minister Dmitry Rogozin called on him in New Delhi.

“Prime Minister Modi described Russia as a time-tested and reliable friend and reaffirmed the shared commitment with President (Vladimir) Putin to expand, strengthen and deepen bilateral engagement across all domains,” a statement issued by the Prime Minister’s Office said.

“He recalled his recent meeting with President Putin in Tashkent in June and via video-link for dedication of the Kudankulam Nuclear Power Plant Unit 1 at the beginning of this month,” it stated.


On his part, Rozogin conveyed Putin’s greetings to Modi and briefed him on the progress in ongoing projects between India and Russia.
Modi said that India was eagerly awaiting Putin’s visit to India later this year.

http://indianexpress.com/article/india/india-news-india/pm-modi-reaffirms-time-tested-ties-with-russia-2987193/

Russia is ready to tap India as a global aeronautics manufacturing base and is willing to partner local firms in developing their technological and production capabilities in the aviation sector, an official representing a delegation from the country said during bilateral talks held here.

India, on its part, expressed eagerness to jointly develop iron ore and coal mines in Russian territory and sought technical inputs on producing high-grade cold-rolled, grain-oriented steel, typically used in power transmission equipment.

Ramesh Abhishek, secretary, department of industrial policy and promotion in the ministry of commerce and industry, led the bilateral talks held under the aegis of an India-Russia working group on modernization and industrial co-operation. The Russian delegation was headed by the deputy minister of industry and trade Alexander Potapov.

While both sides acknowledged their mutual interest in expanding bilateral cooperation between Russian and Indian companies in different sectors, more focused discussions were held on modernization, mining, fertilisers and civil aviation.

Civil aviation

“In the civil aviation sector, Russian side declared its readiness to participate in the Make in India program in order to develop technological and production capabilities of the Indian side in this field and potential supplies of the jointly produced equipment to third countries,” according to a statement issued by the commerce and industry ministry.

The Russians also reiterated their interest in the possible participation of Russian companies in the Delhi-Mumbai Industrial Corridor.

In mining and metallurgy, the two sides agreed to exchange information on potential areas for co-operation in view of India’s request to develop coal fields and iron ore mines in Russia, according to the statement.

http://www.thehindu.com/business/In...nautics-manufacturing-base/article9003809.ece

http://sputniknews.com/business/20160818/1044402254/russia-india-aircraft.html

Russia is set to launch a production unit for aircraft parts and equipment in India under the ‘Make in India' program.

US and European aviation companies are likely to face major competition in India as Russia has proposed to set up a production line for India’s civil aviation sector. A Russian delegation headed by Alexander Potapov, Deputy Minister of Industry & Trade of the Russian Federation, put forward this proposal before Indian officials of the Department of Industrial Policy and Promotion in New Delhi.
A statement released by India’s Ministry of Commerce and Industry says, “In the civil Aviation sector, the Russian side declared its readiness to participate in the “Make in India” program in order to develop technological and production capabilities of the Indian side in this field and potential supplies of the jointly produced equipment to third countries.”

Russia wants to introduce Sukhoi Superjet 100 (SSJ100) civilian aircraft in India and has a target set to put out at least 50 SSJ100 in the next three to five years. Sukhoi expects to sign a deal this year with Tata Advanced System to manufacture key airplane parts in India.
Russia’s proposal to take part in the ‘Make in India’ program comes soon after the announcement of the New Civil Aviation Policy by India which says,

“India will provide fiscal and monetary incentives and fast-track clearances to global original equipment manufacturers and their ancillary suppliers. In the event that the cost of Made-in-India aircraft and components work out to be higher than those supplied from their original sources, the government will consider an incentive package to nullify the cost differential.”

India is one of the fastest growing aviation markets in the world and is expected to displace the UK as the third largest market by 2026 while Centre for Asia Pacific Aviation, a consulting firm, predicts that domestic air traffic of Indian civil aviation market likely to surpass 100 million by 2018 as compared to 81 million in 2015-16.
Keeping in mind the growth of the air traffic, Boeing, the US-based aircraft manufacturer, projects a demand for 1,850 new aircraft in India over the next 20 years. Value of this demand will be approximately worth USD 265 billion. However, Ministry of Commerce & Industry itself projected a demand of 800 aircrafts by year 2020.

Apart from manufacturing aircraft, there are vast opportunities in Maintenance, Repair and Overhaul (MRO) as well. According to the Ministry of Civil Aviation, “The MRO business of Indian carriers is around USD 751 million, 90% of which is currently spent outside India – in Sri Lanka, Singapore, Malaysia, UAE etc.” The Indian government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines.

http://inserbia.info/today/2016/08/putin-russia-to-develop-indian-nuke-power-industry/

Russian President Vladimir Putin has announced that Moscow will soon sign an agreement with New Delhi to construct the third stage of India’s Kudankulam nuclear power plant.

Speaking at a media conference in the Russian capital, President Putin recently said: “We have big plans with our Indian friends in the area of nuclear energy. Construction work on the third and fourth blocks of the Indian nuclear power plant started in February. We expect to sign a general framework agreement and a credit line for the construction of a third stage by the end of this year.” He met the press after the handover of the plant’s first power unit to India. Earlier, President Putin and Indian Prime Minister Narendra Modi dedicated the first unit of the power plant to the South Asian nation via video-conferencing.

The power station, situated in the southern Indian province of Tamil Nadu, is being built by Rosatom nuclear corporation of Russia on the basis of a deal signed between Moscow and New Delhi in 1998. Putin thanked Rosatom officials for building the plant, saying that the first and second reactors of the Kudankulam nuclear power plant would enhance India’s energy supply and also strengthen its economic position.

For his part, Prime Minister Modi said that it was not possible for India to build the plant without Russia’s help, as 80% of the project’s financing was covered by a Russian loan. Revealing that India plans to build a number of 1,000-megawatt nuclear power plants jointly with Russia, the premier stressed: “I have always deeply valued our friendship with Russia and it is fitting that we jointly dedicate the first unit of Kudankulam nuclear power plant.” Modi added: “In the years ahead, we are determined to pursue an ambitious agenda of nuclear power generation. At Kudankulam alone, five more reactors of 1,000-megawatt each are planned. In terms of our co-operation with Russia, we plan to build a series of bigger nuclear power plants.”

Currently, Russia is the only country that is co-operating with India on nuclear energy. The first reactor at the Kudankulam plant is one of the most powerful reactors in India and it meets the latest safety requirements. The second generator will start operating in the coming months.

Russia has executed meticulously Kudankulam nuclear power project despite many hurdles geography, policies, regionalism, economy, infrastructure, agitations, 4 more rector to be built here

6(1000MW)+6(1200MW)+4(1200MW) India will buy 20 Russian Reactors

Russia to Enter $300 Bln Indian Civilian Aircraft Market in a Big Way

Russia is set to launch a production unit for aircraft parts and equipment in India under the ‘Make in India' program.

US and European aviation companies are likely to face major competition in India as Russia has proposed to set up a production line for India’s civil aviation sector. A Russian delegation headed by Alexander Potapov, Deputy Minister of Industry & Trade of the Russian Federation, put forward this proposal before Indian officials of the Department of Industrial Policy and Promotion in New Delhi.

A statement released by India’s Ministry of Commerce and Industry says, “In the civil Aviation sector, the Russian side declared its readiness to participate in the “Make in India” program in order to develop technological and production capabilities of the Indian side in this field and potential supplies of the jointly produced equipment to third countries.”

Russia wants to introduce Sukhoi Superjet 100 (SSJ100) civilian aircraft in India and has a target set to put out at least 50 SSJ100 in the next three to five years. Sukhoi expects to sign a deal this year with Tata Advanced System to manufacture key airplane parts in India.

“India will provide fiscal and monetary incentives and fast-track clearances to global original equipment manufacturers and their ancillary suppliers. In the event that the cost of Made-in-India aircraft and components work out to be higher than those supplied from their original sources, the government will consider an incentive package to nullify the cost differential.”

India is one of the fastest growing aviation markets in the world and is expected to displace the UK as the third largest market by 2026 while Centre for Asia Pacific Aviation, a consulting firm, predicts that domestic air traffic of Indian civil aviation market likely to surpass 100 million by 2018 as compared to 81 million in 2015-16.

Keeping in mind the growth of the air traffic, Boeing, the US-based aircraft manufacturer, projects a demand for 1,850 new aircraft in India over the next 20 years. Value of this demand will be approximately worth USD 265 billion. However, Ministry of Commerce & Industry itself projected a demand of 800 aircrafts by year 2020.

Apart from manufacturing aircraft, there are vast opportunities in Maintenance, Repair and Overhaul (MRO) as well. According to the Ministry of Civil Aviation, “The MRO business of Indian carriers is around USD 751 million, 90% of which is currently spent outside India – in Sri Lanka, Singapore, Malaysia, UAE etc.” The Indian government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines.

http://sputniknews.com/business/20160818/1044402254/russia-india-aircraft.html

http://sputniknews.com/business/20160823/1044557719/russia-india-il-114.html

Russian Deputy Trade Minister Alexander Potapov said that Russia offered India to launch production of Ilyushin Il-114-300 regional airliners at India's Hindustan Aeronautics Limited (HAL) facilities.

NEW DELHI (Sputnik) — Russia has made an offer on setting up the production of Ilyushin Il-114-300 regional airliners at India's Hindustan Aeronautics Limited (HAL) facilities, Russian Deputy Trade Minister Alexander Potapov said Tuesday.


Earlier, the Indian Ministry of Commerce and Industry said that Russia agreed to take part in the Make in India program during a meeting of the Russian-Indian working group on industrial cooperation.

"We have always talked about the feasibility and readiness to expand cooperation. This also applies to civil aviation. One such project could be the creation of an Indian regional aircraft. In accordance with a request from the Indian side, we sent our proposals on organizing the production of Il-114-300 aircraft at HAL facilities," Potapov said.

Russia's RT-Chemical technologies and composite materials company (JSC RT-Chemcomposite), part of the Rostec state corporation, is also looking into projects on setting up the production of aircraft glazing as well as polymer composite materials for civil aviation in India, he added.

Il-114-300 is a variant of the Ilyushin Il-114 regional airliner fitted with a Klimov TV7-117SM turboprop engine.
modiu.png

The Il-114 was developed by Ilyushin Design Bureau in the late 1980s for short-haul flights within the Soviet Union. Since then, 20 planes of this type have been manufactured. Mass production of the plane is expected to start in Russia in 2019.

http://www.asianage.com/india/india-and-russia-keeping-special-partnership-track-248

Prime Minister Narendra Modi and Russian President Vladimir Putin will meet at least twice over the coming two months. The first meeting will be on the margins of G-20 Summit in Hangzhou, China on September 4-5. Second interaction will be during Mr Putin’s visit to India to attend the Brics and annual bilateral summit in Goa on October 15-16.

Russian deputy prime minister Dmitry Rogozin visited India to prepare for Mr Putin’s forthcoming visit. This was Mr Rogozin’s fourth visit to India since Mr Modi’s victory in May 2014. This is testimony to the significance that both countries attach to bilateral partnership.


Strong relations with Russia are a key pillar of India’s foreign policy. In his meeting with Mr Rogozin on August 20, 2016, PM Modi described Russia as “a time-tested and reliable friend...”

Recent years have witnessed rapid growth in all aspects of bilateral partnership encompassing defence, hydrocarbons, nuclear energy, space cooperation, science and technology, and cultural collaboration and people-to-people contacts.

Russia of today is not the Russia of 2014 when it was reeling under onslaught of Western sanctions. Russia is rapidly emerging as a confident and resurgent power. With Indian economy growing at a robust 7.6 per cent per annum, time is propitious for the two countries to take their relationship to a new level.

Russia continues to be India’s main trading partner in military and technical sphere with more than 70 per cent of equipment in the Indian armed forces being of Russian origin. Bilateral engagement has evolved from supply of end products to technology transfer, joint research and development.

The most rewarding example of joint cooperation is successful designing and manufacture of sophisticated BrahMos supersonic cruise missile for Indian armed forces and export to third countries. Discussions for exports to the UAE, Vietnam, South Africa and Chile are at an advanced stage.
List of joint projects between India and Russia is formidable. A significant contract for supply and joint production of 200 Russian light helicopters Ka-226T was signed recently.

Most bilateral projects are in consonance with “Make in India” programme launched by Mr Modi.

Several projects like the fifth generation fighter aircraft and purchase of S-400 air missile defence system are expected to fructify soon.
Nuclear energy has emerged as one of the most significant and fastest growing areas of bilateral cooperation. Two 1,000MW power plants are already functional at Kudankulam, Tamil Nadu. Four more are slated to come up in the same vicinity. During Mr Modi’s visit to Moscow last December, it was decided to establish six more 1,000MW nuclear power plants probably in Andhra Pradesh.

Russian atomic power corporation Rosatom is interested in participating in “Make in India” programme and assembly of fuel rods and control system components.

Some components can be assembled in India for using domestically, for export to Russia and to third markets.

Hydrocarbons hold enormous potential for bilateral cooperation. Russia is one of the world’s largest producers of oil and gas.
As a result of Western sanctions Russia has adopted a new “Asia Pivot” strategy, the most marked aspect of which is its turn towards India and China.

Energy security for Russia means having long-term arrangements for supplying its oil and gas. India’s energy demand is growing at a rapid pace. Today India is dependent on imports of oil to the extent of 80 per cent of its requirement and in gas to the tune of 37 per cent. Russia and India hence make an ideal match as producer and consumer.

India is significantly invested in Russia’s oil and gas sector. Its first investment was a 20 per cent stake in Sakhalin-I worth $1.7 billion in 2001. This investment has yielded impressive gains. ONGC Videsh Limited (OVL) invested $2.1 billion to buy 100 per cent stake in Imperial Energy in 2009. This turned out to be highly unprofitable both because of the high price paid and inadequate production from the oil field. In lieu, OVL has picked up significant stakes in Bashneft, Titov and Trebs fields off the Arctic continental shelf.

In July 2015, Essar and Rosneft signed a preliminary agreement for Rosneft to acquire 49 per cent stake in Essar’s Vadinar Oil refinery and supply crude to Essar for over 10 years. In September 2015, OVL signed an agreement with Rosneft to acquire 15 per cent stake in Vankorneft project, the second largest oil field in Russia. Recently in June, an Indian consortium signed a sale-purchase agreement with Rosneft for acquisition of 23.9 per cent in Vankor oil block.

Growth in bilateral trade and investment has not been commensurate with other areas of bilateral engagement. Two-way trade continues to languish at an abysmally low level of $10 billion. The two countries have fixed a target of $30 billion by 2025. Several silver linings have appeared recently on the horizon. Some of these include: India’s prospective membership of Eurasian Economic Union, development of International North-South Transport Corridor, trial runs on which took place on August 8, 2016, construction and upgradation of Chabahar seaport to promote and improve connectivity with Central Asia, Russia and Afghanistan.

India’s membership of Shanghai Cooperation Organisation will provide several opportunities to promote security, stability and economic growth in Central Asia and the region. Regional countries need to collaborate actively to ensure that Afghanistan does not descend into conflict and instability. Russia and India can play a crucial role in this as also in dealing with the scourge of terrorism emanating from Pakistan, Afghanistan and West Asia. Unrest and continuing violence in Syria as well as the uncontrolled spread of Islamic State, terrorism and radicalisation of youth are other challenges that the two countries need to quell and overcome together.

Both India and Russia are factors of peace, stability, security and economic development, domestically, bilaterally and regionally. Rapidly expanding special and privileged strategic partnership between the two countries bodes well for future of India and Russia as well as the region.
The author is a former ambassador

After a pronounced tilt towards the US in terms of defence deals and military-to-military ties over the last decade, further reinforced by the recent inking of the bilateral logistics pact, India has reassured Russia that their traditional strategic partnership will continue on its upward trajectory.

Defence ministry sources said negotiations for mega defence projects with Russia like joint development of the futuristic fifth generation fighter aircraft (FGFA) andKamov Ka-226T light utility helicopters were “well on track” after being stalled for some time.

Similarly, major defence deals with Russia, ranging from the Rs 39,000 crore acquisition of five S-400 Triumf advanced air defence missile systems to the $1.5 billion lease of a second nuclear-powered submarine, are also in the offing.

India already operates a nuclear-powered Akula-II submarine christened INS Chakra, which was acquired on a 10-year lease from Russia in April 2012 under a $900 million deal inked earlier.

All this is reflected in the flurry of top-level bilateral meetings to be held in the coming days. The 16th meeting of the India-Russia Military Technical Cooperation Working Group, for instance, will be held on Wednesday and Thursday.

The Indian delegation will be led by the director-general of defence acquisitions in the meeting, which will include the inking of a joint protocol. Concurrently , the two countries will also hold a top meeting on shipbuilding, aviation and land systems, which will be co-chaired by the defence production secretary from India.

The fine balance India is trying to strike between the two erstwhile Cold War rivals is also evident in the way the Indian Army will hold combat exercises with US and Russian forces this month.

The ‘Yudh Abhyas’ exercise between US troops from Fort Louis and Madras Regiment soldiers will be held at Chaubatia in Uttarakhand from September 14 to 27. The ‘Indra’ exercise between Russian soldiers and Kuma on Regiment troops will be held at Vladivostok from September 22 to October 2.

After Indian, US and Japanese warships conducted the top-notch Malabar exercise off Okinawa in June, India and Russia will hold their Indra naval wargames in theIndian Ocean around December.”Russia was worried whether India wanted to continue complex projects like the FGFA. We have expressed our keenness to ink the final R&D design contract for the Indian ‘perspective multi-role fighter’ (based on the Russian FGFA called Sukhoi T-50 or PAK-FA) in 2016-2017,” said a source.

India, however, has conveyed that it is not interested in the proposed joint development of the multi-role transport aircraft (MTA) due to the twin-engine plane’s cost-viability, delivery timelines and failure to meet high-altitude requirements.But Russia has taken heart from India’s positive response on other projects, and has even offered its under-construction nuclear-powered aircraft carrier ‘Storm’ (Shtorm) and technologies associated with the project.

TOI had earlier reported that the US was currently unwilling to offer help to India in nuclear propulsion for the proposed construction of its largest-ever warship, the 65,000-tonne aircraft carrier INS Vishal. In effect, the USRussia rivalry to woo India in the military arena continues.

http://timesofindia.indiatimes.com/Now-India-turns-to-Russia-for-mega-defence-deals/articleshow/54039916.cms