India's S.M. Krishna (centre) welcomes his Chinese counterpart Yang Jiechi (right) and Russian Sergei Lavrov

The Fifteenth Session of the Indo-Russian Inter-Governmental Commission (hereafter referred to as Commission) on Trade, Economic, Scientific, Technological and Cultural Cooperation was held on 21 October 2009 in Moscow.

The Russian Side was led by the Deputy Chairman of the Government of the Russian Federation – The Head of The Secretariat of the Government of the Russian Federation and the Chairman of the Russian side of the Commission H.E. Mr. S. S. Sobyanin. The Indian Side was led by the Minister of External Affairs and the Chairman of the Indian side of the Commission, H.E. Mr. S. M. Krishna.

The discussions were held in the spirit of traditional friendship and mutual understanding and the Sides decided the following:

While noting with satisfaction positive development of Russia-India trade, economic & investment cooperation under financial & economic crisis conditions, the Sides expressed availability of necessary prerequisites for increasing mutual turnover to USD 10 billion in 2010. The sides took note of the positive trends in bilateral trade witnessed even at these difficult times of the international financial crisis. Bilateral trade turnover in 2008 was USD 6.95 billion and in the period January-August 2009, bilateral trade increased by about 10% in comparison to corresponding period of previous year. Both Sides agreed to take further steps for bilateral cooperation to reach the level corresponding to the existing potential and increasing Russia–India trade to USD 20 billion by 2015.
The Sides will implement proactively the decisions taken during highest level visits, including the visit of the Prime Minister of India H.E. Dr. Manmohan Singh to Russia on 11-12 November 2007, the visit of the President of Russia H.E. Mr. D.A. Medvedev to India on 4-6 December 2008, and the visit of President of India H. E. Mrs. Pratibha Devisingh Patil to Russia on 2-6 September 2009.

The Sides noted the successful holding of numerous events in the context of the Year of Russia in India and the Year of India in Russia, and came to an agreement about the continuation of the practice of holding theme days, decades, months devoted to the spheres of economy, science, culture, education and cooperation on the level of regions and cities of both countries.

The Sides noted progress in cooperation in the areas of power, including nuclear energy, oil and gas, space, telecommunications, metallurgy, machinery and automobile industry, aircraft building, banking and financial services, construction of highways and pipelines, air transport service, science and technology, tourism and underlined that there is considerable scope for cooperation in sectors such as minerals development, railway and water transport, aircraft and shipbuilding, information technologies, biotechnology, nano-technology, construction, fertilizers and chemicals, pharmaceuticals, agricultural and processed food products, ready made garments and textiles, gems and jewelry.

The Sides noted the holding of the Second meeting of the Joint Task Force (JTF) on 26-27 March 2009 in Moscow established by the Ministry of Commerce and Industry, Government of India and the Ministry of Economic Development of the Russian Federation to monitor the implementation of the Russian-Indian Joint Study Group (JSG) recommendations to promote the bilateral trade, investment and economic cooperation. The Sides recommended that the organizations concerned should implement the JTF decisions.

The Russian Side expressed concern regarding significant delay in implementation of a number of bilateral cooperation projects (construction of thermal power stations “Sipat” and “Barh”).

The Indian side expressed concern regarding non-fulfillment of contractual obligations by Russian companies in regard to a number of contracts (including between ONGC & Amur Shipbuilding Plant for construction of a seismic survey vessel; and between Tata Motors Ltd & M/s ZAO Amur/JSC VTB Bank for supply of commercial vehicles).

The Sides noted the importance of the Joint Venture “Titanium Dioxide Project” in Orissa as the first commercial project permitting use of the Rupee Rouble fund against Russian equity contribution, and hoped for amicable and satisfactory resolution of any disputes between the parties in the Joint Venture so as to provide direction to the further development of bilateral investment cooperation.
The Sides recommended that JTF should examine implementation of the above mentioned and the other bilateral projects and issue recommendations for problems settlement and for bilateral cooperation algorithm aimed to avoid similar situations in future. The Sides noted the inadmissibility of unjustified protectionist measures, which hamper the development of mutual trade.

The Sides recommended that respective authorities should speed up harmonization of documents regulating mutual acceptance certificate of conformance issued by authorized agencies. The Sides noted with satisfaction the considerable interest of the business circles of both countries in the Third Indo-Russian Forum on Trade and Investments which was held in Moscow in September 2009. The Sides called upon the concerned organizations of both countries, the representatives of the regions of India and Russia, to take part in the Fourth Indo-Russian Forum on Trade and Investment, which is to be held in New Delhi in 2010.

The Sides noted the considerable potential in cooperation in the field of nuclear energy in India and appreciated the work for the preparation of the contracts for the construction of the 3rd and 4th units at “Kudankulam” nuclear power station as well as for beginning the construction of nuclear power stations of Russian design on the new sites in India.
The Sides welcomed the acquisition of assets in oil and gas deposits in the Tomsk Region by “ONGC Videsh Ltd.” and agreed to continue the discussion about the possibility of the participation of Russian companies in realization of Indian oil and gas complex projects as well as of the Indian companies in exploration of oil and gas resources in Russia.

The Sides recommended the Russian-Indian Chief Executive Officers Council to expedite the work of consideration and promotion of bilateral cooperation projects, including the ones within the framework of government programs of development economy sectors, acting in Russia and India. The Sides noted the strong interest of the Privolzhsky Federal District to develop economic ties with India and called upon the regions of Russia and India to expedite mutual contacts for the further development of interregional cooperation.

The Sides recommended ¬to the concerned organizations to arrange for regular exchange of information about investment opportunities in the various regions of Russia and India. The Sides recommended the Indo-Russian Joint Task Force on Mutual Financial Obligations to hold its meeting at the earliest for the resolution of mutual financial obligations.

The Sides called upon the banks and financial organizations to expand their presence in each other’s country in order to ensure the conditions for proper banking services of the increasing volumes of trade and economic cooperation. The Sides welcomed the work for the opening of the branch of the Sberbank of Russia and the liaison office of Gazprombank in India. The Indian Side flagged the issue of Indian companies based in Russia facing difficulties in renewal of work permits of their India-based employees. Both sides agreed to work on setting up a fast track mechanism for expeditious renewal of work permits in accordance with applicable laws, which will go a long way in creating conducive business environment.

Recognising the large benefits accrued from the scientific collaboration under the Integrated Long-Term Programme of Cooperation in Science & Technology (ILTP) so far, the Commission recommended its further continuation for next ten years with dedicated funding on both sides. The two sides agreed to initiate necessary steps for signing the extension of ILTP for another period of 10 years with new structure and more focused on Innovation Led Technology Partnership development. The sides noted with satisfaction the ongoing collaboration in the areas of Basic Sciences between the Department of Science & Technology and Russian Foundation for Basic Research. It was agreed to initiate a few mega projects in Basic Sciences in areas of mutual priorities.

The Sides also noted with satisfaction the initiatives taken by the Department of Science & Technology Govt. of India and Russian Federal Agency for Science & Innovation on Innovative mega R&D Projects in selected areas with dedicated funds from the two sides. The Commission recommended early conclusion of MOU and launch of the Innovation led R&D Programme and Technology Partnership. The Commission reiterated its earlier recommendation that the two sides should expedite early establishment of Indo-Russian Technology Centre to facilitate transfer of technology to industry, creation of joint venture around high technologies and various other forms of S&T collaboration.

It was appreciated that RUSNANO and Department of Science & Technology through Nano Mission of India have shown interest and agreed to cooperate on the model of Inventor from one side and Investors from the other side. The two sides agreed to work out an MoU with clearly defined scope of work and explore the possibility of signing the MoU by February / March 2010.

The Commission appreciated the efforts being taken by both sides for India’s enrolment as Associate member of the Joint Institute for Nuclear Research, Dubna. The Commission noted with satisfaction the conclusion of two MOUs, between CSIR, one on SARAS certification and further design work with Myashichev Design Bureau and another on Ga-As solar chips with Ioffe Physico-Technical Institute, St. Petersburg.

The Sides noted the commencement of the realization of the application filing electronic program for tourists’ reception and Russian tourist visas registration, worked out jointly by Rostourism, Russian MFA Consulate Department and the largest tourism organizations on the base of Non-Profit Partnership “The World Without Borders” and agreed to further support the expansion of the cooperation in the field of tourism and tourism infrastructure development. The Protocols of the last meetings of the Working Groups under the Commission are the integral part of the Protocol and enclosed in Annexure II to it.

The Commission directs the Working Groups to take the necessary measures for the realization of the agreements, stipulated in the corresponding Protocols.

The Sixteenth Session of the Commission shall take place in New Delhi in 2010. The dates and agenda of the Session would be agreed upon through diplomatic channels.

This Protocol was signed in Moscow on 21 October 2009 in Russian and English languages.