INDIA & THE WORLD BILATERAL AFFAIRS MARCH 2014

INDIA & THE WORLD BILATERAL AFFAIRS MARCH 2014

• An 18-member high-level official delegation led by HE Sultan bin Rashid Al Khater, Under Secretary in the Ministry of Economy and Commerce, Government of Qatar visited New Delhi on 25-26 March, 2014. Both sides discussed issues and proposals of mutual interest in a number of sectors including investment; banking and finance; energy; petrochemicals and fertilizers; civil aviation and tourism. Both sides shared the view that there is a vast potential to further strengthen cooperation in the above-mentioned and other sectors, and agreed to actively follow up the discussions held during the visit of the Qatari delegation. The visiting delegation also interacted with a number of representatives of India’s corporate sector at business events organized by Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI).
  
• India and China, on 18 March, signed a memorandum of understanding on IT cooperation, which, officials said, was a ‘formal recognition’ from the Chinese government to promote Indian software companies, which have largely struggled to obtain contracts from Chinese state-run companies. Both countries held their third Strategic Economic Dialogue (SED) in Beijing. India sought Chinese support in substantially raising the speed on three rail corridors and in developing modern stations. China has rapidly modernised its rail network, which only three decades ago lagged behind India’s. Today, express trains run at 200 to 250 kilometres per hour, up from 110 kilometres per hour, while the government has revamped stations to build a network of modern, airport terminal-like rail hubs. China has also built the world’s biggest high-speed rail network, where trains run at 350 kilometres per hour on 13,000 kilometres of newly-laid track, running entirely separately from the older rail network. India has sought assistance in raising speeds on three lines, between New Delhi and Agra, Kanpur and Chandigarh. Chinese rail officials said they could help raise speeds from the current 130 kilometres per hour to 160 or even 200 kilometres per hour. At the SED, both sides signed an MoU to push IT cooperation. India has asked China to expand market access for software and pharmaceutical companies, and to take steps to narrow the record $35 billion trade deficit, which was not sustainable.
  
• Union Minister of New and Renewable Energy, Dr. Farooq Abdullah on 11 March, held a bilateral meeting for promoting cooperation in renewable energy with a delegation from Sudan. The talks focused on the areas of possible cooperation especially in the development of wind energy, solar energy, biomass and small hydro resources. It was also agreed that Ministry of New & Renewable Energy would provide support for resource assessment and training in the areas of wind and solar energy through its technical institutions viz. Centre for Wind Energy Technology, Chennai and the National Institute of Solar Energy, Gurgaon. Indian Renewable Energy Development Agency (IREDA), the Indian green energy financial institution would provide knowledge and technical appraisal assistance in developing renewable energy projects on commercial basis. A team comprising officials from Ministry of New & Renewable Energy, IREDA, CWET and NISE would soon visit Sudan to discuss a framework for further cooperation between the two countries.
  
• India and the United States on 11 March, agreed to further work collaboratively on energy sector. At the India-US Energy dialogue in New Delhi, both the countries agreed to promote scientific cooperation, research & development for greater technological innovation and for deployment of environmentally-friendly technologies and products. Deputy Chairman Planning Commission, Dr.Montek Singh Alhuwalia and the United States Department of Energy Secretary Dr. Ernest Moniz after participating in the Dialogue, held a press interaction in New Delhi. They hoped that the Dialogue will lead to business-to-business collaboration of both the countries. The expected expanding trade and sound regulatory frameworks would emerge to deliver energy solutions for sustainable growth of economies of both the countries for benefit of their people. Five of the six working groups affiliated with the Energy Dialogue (Coal, Oil & Gas, New Technologies and Renewable Energy, Power and Energy Efficiency, and Sustainable Growth) have held meetings over the last five days at the Co-chairs level including experts/officials. U.S.-India Joint Clean Energy Research and development Centre had also brought up issues relating to progress on solar energy, advanced bio-fuels and energy efficiency of buildings under PACE-R. Partnership to Advance Clean Energy PACE- Research & Development (PACE-R) has been working on research and development projects on solar energy, Building Energy Efficiency and Second generation bio-fuels. A number of consortia from Industry, R&D and Education Institutions have been formed to take up the projects in these areas. In 2009, the India and U.S. agreed to significantly increase collaboration on energy security and clean energy through launching the Partnership to Advance Clean Energy (PACE). India and USA have also signed two separate MOUs for partnership in clean energy access (PEACE) and demand for air-conditioning sector. The MOU on Promoting Energy Access through Clean Energy (PEACE) was launched in September 2013 for promoting increased energy access and is developing several priority activities.
  
• The second meeting of India-UAE High Level Joint Task Force on Investments (HLTFI) was held on3 March, in Mumbai. The HLTFI, co-chaired by Anand Sharma, Union Minister of Commerce & Industry and Sheikh Hamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince Court, was established in April 2012 as a platform to address mutual issues associated with existing investments between the two countries and to promote and facilitate cross-border investments. More than 30 government and private sector representatives from India and the UAE were present. Discussions were held on supporting the establishment of a strategic petroleum reserve in India in a manner serving the common strategic interests of both countries and based on the principles of long term strategic partnership and cooperation. The decision was taken to establish another joint working group to make progress on this effort. Discussions also took place on expediting the resolution of current pending issues associated with existing UAE investments in India (Etisalat, Emaar & DP World), and a plan of action was agreed for the Legacy Issues sub-working group to address and resolve these issues; Acknowledged TAQA, the Abu Dhabi-based international energy and water company, as the largest private operator of hydroelectric plants in India, following its acquisition, signed on 1st March, 2014 in New Delhi, of two hydroelectric plants in India. The equity invested by the TAQA-led consortium in the acquisition of the two hydroelectric plants will amount to approximately INR 3,820 crores (USD 616 million), of which 51% is from TAQA. The consortium will also acquire the assets` non-recourse project debt. The agreement follows the signing of the UAE-India Bilateral Investment Promotion and Protection Agreement in December 2013 and the UAE`s commitment at the last HLTFI meeting to invest USD 2 billion in India`s infrastructure sector. The first meeting of the HLTFI, held in Abu Dhabi in February 2013, resulted in a wide-ranging discussion on matters of mutual interest including the identification of priority sectors of engagement for possible investments in the two countries. Since then, work conducted by the HLTFI to strengthen and develop bilateral relations in the field of investments culminated in the signing, in December, 2013, of a Bilateral Investment Promotion and Protection Agreement (BIPPA), serving as a platform for promotion and reciprocal legal protection of investments in both countries. As a result of decisions taken during the inaugural meeting of the HLTFI, several joint working groups have been created to address issues of mutual interest in the Infrastructure, Investment & Trade, Energy, Manufacturing & Technology, Aviation, Information and Communication Technology (ICT) and Legacy Issues. At today`s meeting, an action plan was agreed to expedite progress across all these joint working groups. The next meeting of the UAE – India High Level Joint Task Force on Investments will be held on a mutually agreed date and location.
  
• India and Nepal on 6 March 2014 started a joint military exercise at Saljhandi in Rupandehi district of Nepal. The two week exercise named Ex-Surya Kiran Drills VIwas inaugurated by Nepal’s Army Major General Victor SJB Rana. Around 250 personnel from Indian Army and 200 personnel from Nepal army were participated. During the sixth Indo-Nepal war games that will end on 18 March 2014, the armies will work to upgrade their practical and principle aspects of jungle warfare, anti-insurgency operations and rescue operations. The exercise also includes a detailed training in organisation and conduct of disaster response, management and rescue operation. The two sides will also share experiences on counter-terrorist operations. Similar joint exercise named Ex- Surya Kiran-V (5th Indo-Nepal war games) between the two armies was held from 23 September to 6 October 2013 at Pithoragarh district of Uttrakhand in India. This exercise was conducted with an aim at training troops in counterterrorism operations and enhancement of defence cooperation and military relations between the two nations.