INDIA & THE WORLD BILATERAL AFFAIRS SEPTEMBER 2014
- Australian Govt. green signal for Adani Mining’s $1.9-b rail project
The Australian government has cleared Adani Mining’s $16.5 billion proposal to build a coal mine, among the world’s biggest, in Queensland State. The Carmichael Coal Mine project will involve open-cut and underground mining in the north Galilee Basin, produce 60 million tons of coal a year, and create a 189-km-long rail line.
The Australian government said the project would produce and transport coal to power the homes of about 100 million people in India. The value of the thermal coal resources, over a 60-year period, has been pegged at $300 billion. - India, China agree on withdrawal of troops from Ladakh
India and China have resolved the stand-off at the Ladakh border and withdrawal of troops will begin on 26th September and be completed by September 30, external affairs minister Sushma Swaraj said
Swaraj met with Chinese foreign affairs minister Wang Yi on 26th September at the United Nations and said that she discussed the border stand-off issue with him. The two armies were engaged in a stand-off at Chumar region in Ladakh, coinciding with the first visit of the Chinese President.
Tension in the area erupted on 21st September when some Chinese workers, who were constructing a road on their side, crossed into the Indian side and also claimed that they had orders to build a road up to Tible, 5-km deep inside Indian Territory. - Modi has immunity from any suit: US
Visiting heads of State not only enjoy immunity from American lawsuits but also they cannot be personally served or handed court summons, the US on 26th September said, a day after a US court issued summons against Prime Minister Narendra Modi for his alleged role in the 2002 communal violence in Gujarat when he was the state's chief minister. - Financial assistance to fight Ebola virus
India announced to contribute 12 million US dollars to the United Nations to fight the deadly Ebola virus in Africa. The contribution was approved by Prime Minister Narendra Modi on 25 September 2014. India will contribute 10 million US dollar to Fund of United Nations Secretary General for Ebola and 2 million US dollar for purchase of protective gear to tackle Ebola.
The World Bank Group also approved 105 million US dollars grant for Ebola Emergency Response to fight Ebola in Guinea, Liberia and Sierra Leone in September 2014. - Modi asked to fight against terrorism
Under a new leader, India on 27th September asserted itself in a blend of style and substance before the global community, as Prime Minister Narendra Modi made his maiden address to the United Nations General Assembly. Modi touched upon the Pakistan issue, fleetingly, among other things.
Referring to Pakistan Prime Minister Nawaz Sharif's speech reiterating the issue of a plebiscite on Kashmir, Modi wondered if anything could be achieved by raising the matter at the UN. He said India wanted to have a dialogue with Pakistan, but not under the shadow of terrorism.
The prime minister asked strengthen the UN instead of G-nations, he said the 'G' group would soon run out of serial numbers and advised them to become 'G-All'.- He reaffirmed India's faith in multilateralism and asserted it was not a forum to raise bilateral issues. He also asserted that not one nation or group of nations could steer the United Nations and the affairs of the world.
- He lauded the efforts of 'Blue Helmets', the UN Peacekeeping force where India has a big presence, in trying to end want and hunger.
- He said terrorism in any form was unacceptable.
- Asking members to reform the UN as an existential imperative - institutions that reflect the imperatives of the 20th century will not be effective in the 21st.
- He also urged the world to be led by India's soft power - yoga, culture and belief in dialogue and peace - and asked the UN to adopt an International Yoga Day.
- TCS opens all-woman BPO centre in S. Arabia
India's largest software exporter Tata Consultancy Services (TCS) on 14th September said it has opened Saudi Arabia's first all-female business process centre, which will provide employment to up to 3,000 women in three years. Saudi Aramco and GE are the centre's first customers, TCS said
Both the clients have already surpassed their target of recruiting 100 women each, while the total number of those employed at the centre stands at 300, it said. The Riyadh-based 3,200-sq mt facility will offer customers specialised finance and accounting, human resources, materials supply and office services to improve their operational efficiency, it said. - India-Vietnam sign seven pacts
Strategically important oil and gas cooperation and extension of a USD 100 million credit by India for defence purchases are among the seven pacts inked between India and Vietnam as they called for "freedom" of navigation in the South China Sea, a remark that could irk China which has been claiming territorial sovereignty over the high seas.
The agreements were signed during the second day of the four-day state visit of President Pranab Mukherjee who held talks with his Vietnamese counterpart Truong Tan Sang.
Both the countries decided to strengthen and deepen bilateral ties on the basis of the strategic partnership with focus on political, defence and security cooperation.
They decided to step up collaboration in the economic sector, science and technology, culture and people-to-people links.
In a subtle message to China, India and Vietnam, who established strategic ties in 2007, asserted that the freedom of navigation in the disputed waters of the resource-rich South China Sea should not be "impeded" and called all the parties "concerned" to exercise restraint in this context.
They agreed that freedom of navigation in the East Sea/South China Sea should not be impeded and called the parties concerned to exercise restraint, avoid threat or use of force and resolve disputes through peaceful means in accordance with universally recognised principles of international law, including the UNCLOS-1982," said a joint communique issued after the meeting.
China has been exerting its influence in these waters which is not taken well by Vietnam and other bordering countries like the Philippines. Beijing has also objected to India's exploration projects in the Vietnamese oil blocks.
Among the seven pacts inked, a Letter of Intent (LoI) was signed between the ONGC Videsh Limited (OVL) and Vietnam Oil and Gas Group (PetroVietnam).
The LoI is aimed at further consolidating cooperation between India and Vietnam in energy sector and pave the way for future collaboration between the two countries.
The two sides urged for "collective commitment of the concerned parties to abide by and implement the 2002 Declaration on the Conduct of Parties in the South China Sea and to work towards the adoption of a Code of Conduct in the South China Sea on the basis of consensus.
India and Vietnam also signed an MoU on extension of USD 100 million Line of Credit to Hanoi for defence procurement.
The pact, inked between the Exim Bank of India and the Vietnamese Finance Ministry, provides a concessional line of credit for procurement of defence equipment from India. Details of equipment to be procured by Vietnam are under finalisation.
Another significant pact signed during Mukherjee's visit is an MoU on operating and jointly promoting direct air services between Vietnam Airlines and domestic Indian air carrier Jet Airways.
For the first time, India and Vietnam will have direct daily flights from November 5 with Jet Airways connecting Delhi and Mumbai to the historic Ho Chi Minh City.
Apart from the LoI, the MoU on extending a credit line to Vietnam for defence purchases and the agreement on operating and jointly promoting direct air services, other pacts inked were -- agreement on cooperation and mutual assistance in customs matters, MoU on animal health, MoU on setting up of Pangasius breeding and farming in India and MoU on cooperation in youth affairs and skill development.
The two sides also agreed to undertake focussed cooperation in defence procurement.
The two leaders also agreed to enhance the economic partnership and strengthen the trade and investment linkages between the public and private sectors of both countries, including forging joint ventures.
A sapling of the revered 'Bodhi' tree, originally located in Gaya in Bihar, was on 15th September planted in the Presidential palace of Vietnam by Mukherjee, the second such offshoot of the holy tree in this country.The Indian delegation comprises Oil Minister Dharmendra Pradhan and five other Parliamentarians. - Cairn India, NASSCOM tie up
Cairn India, in association with Nasscom Foundation, has established Cairn Nasscom Knowledge Centre at Challapalli village in Uppalaguptham mandal of East Godavari. This is a part of CSR actitivities, Cairn India has tied up with Nasscom Foundation to provide employability skills to the rural youth by imparting learning on basics of computer and spoken English courses.
India and china made 3 pacts
Chinese President Xi Jinping has reached India on 17th September, for a three visit in India. He was welcomed by Indian Prime Minister Narendra Modi. He reached Ahmedabad. The visit is billed as a significant leap forward to improve bilateral relations between the two Asian giants in these times of fast-changing power equations.
The Chinese President signed three memoranda of understanding (MoUs), heralding long-term cooperation and possible big-ticket investments. China, which has so far invested only Rs 700 crore in Gujarat, is expected to raise it significantly in the years to come.- An important MoU, effective for three years, was signed between China Development Bank and the Gujarat Government’s nodal agency for investments, iNDEXTb (Industrial Extension Bureau) for investment promotion. The Bank will encourage Chinese investments in Gujarat by extending credit to set up industrial facilities and factories at these parks. iNDEXTb will assist Chinese investors in obtaining various clearances and creating infrastructure at these parks, the first of which will be set up near Vadodara to manufacture plastics, electrical equipment and electronic goods.
- The second MoU seeks to establish “Sister Province” relations between Guangdong and Gujarat, covering cooperation in economy and trade, environmental protection, public policy education, health, science and technology, as also tourism and culture. The Sister Provinces will also extend mutual cooperation in sports, youth affairs, urban planning, waste water management, infrastructure, and exchange of business delegations. This MoU will be in force for five years.
- The third MoU, also for five years, was signed between the cities of Guangzhou and Ahmedabad for closer cooperation between the local authorities. “Knowledge-sharing will be done through delegation visits, institutional meetings and sharing of experiences in areas of mutual interest.”
Flag meet held
India and China on 17th September held a flag meeting to discuss the situation in Chumar sector of Ladakh where troops of both the sides are engaged in a face-off situation.
The Brigadier-level flag meeting was held at a border personnel meeting point in Chushul, where the issue of intrusion of Chinese civilians in the Demchok area was also discussed. The meeting discussed the situation in Chumar where the Chinese troops have entered into the perceived Indian area and they have been asked to leave. Around 300 Chinese troops had entered the Indian territory over five days ago and they were confronted by a group of around 100 soldiers from the Army and the ITBP there.
This was the second flag meeting that has taken place in the last one week between the two sides to defuse the situation. Chumar is one of the very few places along the Line of Actual Control where access to the border areas is easier from the Indian side and this place has witnessed several face-off situations in the last two-three years.
IndiGo inks Rs 15, 384 cr deal with China bank
Budget carrier IndiGo has entered into a $2.6-billion (Rs 15,384 crore) deal with Industrial & Commercial Bank of China (ICBC) for financing the purchase of over 30 aircraft. The two parties have signed a memorandum of understanding in the backdrop of Chinese Premier Xi Jinping’s ongoing state visit to India.- ICBC is said to be one of the largest banks in the world by total assets and market capitalisation. In 2013, it topped the Forbes Global 2000 list of world’s biggest public companies.
- IndiGo — largest airline in India by number of passengers carried — currently has a fleet of 81 Airbus A320 aircraft. It is one of the few profitable carriers in the country.
India and China on 18th September agreed to work on improving the skewed bilateral trade relations and sort out the contentious border issue, which has often soured relations between the two countries.
As part of the trade balancing initiative, Chinese President Xi Jinping, announced that China will continue to take active steps to give more market access to products from India, including pharmaceutical and farm goods. Further, he also committed investments of $20 billion over five years.
According to Indian statistics, with an increase in the bilateral trade over the last decade, the trade imbalance against India also increased exponentially from $18.65 billion in 2009 to $36.86 billion in 2013.
The two sides exchanged 12 documents, including a five-year roadmap for promoting balanced and sustainable development of economic and trade relations between the two nations on the principle of equality and mutual benefits.
The two sides agreed to cooperate in the Railways sector with Xi saying that the two leaders agreed to increase the speed on the existing rail section from Chennai to Mysore via Bangalore. The two sides decided to declare 2015 as the Visit India year in China and 2016 as the Visit China year in India.
Renews Customs cooperation pact
India and China have renewed the agreement for Mutual Administrative Assistance and Cooperation in Customs matters. A fresh agreement was signed by the Chairperson of Central Board of Excise and Custom (CBEC) JM Shanti Sundharam and the Chinese Ambassador to India.
The fresh agreement will help in timely availability of relevant information for prevention, investigation and combating Customs offences. It will assist customs administrations in both the countries to exchange experiences in the techniques and methods of clearance of goods and passengers, exchanging information on new trends of smuggling and in simplification and harmonisation of procedures.
Bonding with films
With India and China signing an audio-visual co-production agreement on 18th September, the two countries have agreed to establish a joint working group to facilitate and come up with a concrete co-operation framework for the film sector.
This decision was taken at the meeting between Information and Broadcasting Minister Prakash Javadekar and his Chinese counterpart, Cai Fuchao, Minister for State Administration of Press, Publication, Radio, Film and Television. This group will meet on the sidelines of IFFI 2014 in Goa where China will be the key participant.
SBI, ICICI Bank, Axis Bank to get China Exim Bank credit
State Bank of India and ICICI Bank signed framework agreements with the Export Import Bank of China (China Exim Bank) for Lines of Credit (LOC) amounting to $1.8 billion and $1 billion respectively.
The LOC will be utilised for projects involving import of Chinese raw materials, energy, equipment, mechanical and electronic products, complete sets of equipment, new and high-tech products, energy projects, infrastructure and construction projects and any other projects mutually agreed on by the two banks, the banks said in their respective statements. Axis Bank, India’s third largest private bank, also signed an MoU with China Development Bank for an undisclosed amount to support its corporate clients by funding them at competitive rates.
The deal will also give the bank the opportunity to work closely with Chinese companies in meeting their requirements in India.
SBI, in the statement, said that the agreement is expected to be an important building block in the push to the infrastructure sector initiated by the new Government, which is expected to require an investment of over a trillion dollars over the next few years.
China allows Kailash Mansarovar Yatra via Nathula pass in Sikkim
Indians travelling on the annual Kailash Manasarovar yatra will soon have another route. China agreed to allow the yatra through the Nathula pass in Sikkim. The new route will pass through the city of Shigatse, which is part of the Tibetan Autonomous Region. This new route will be in addition to the Lipulekh pass in Uttarakhand through which the yatracurrently takes place.
A Memorandum of Understanding between the Ministries of External Affairs of India and China signed allows for the opening of the new route for Indian pilgrims to the Tibet Autonomous Region in the People’s Republic of China. As per agreement China will be guest of honour country at the New Delhi World Book Fair 2016 something.
An MoU between the Indian Space Research Organisation and the China National Space Administration will allow India and China to encourage exchange and cooperation in the exploration and use of outer space for peaceful purposes, including research and development of scientific experiment satellites, remote sensing satellites and communication satellites.
The two countries have also agreed to enhance cooperation in the railway sector, including studying the feasibility of cooperation in a high-speed train as part of the MoU between the Ministry of Railways and Government of China on strengthening cooperation in Railways
In total 13 agreements
In total India and China signed 13 agreements. India raised concerns over the standoff at the Line of Actual Control in Ladakh “and repeated incidents” along the border.
In a strong statement, Prime Minister Modi said, “Respect for each other’s sensitivities and concerns, and peace and stability in our relations and along our borders are essential for us to realise the enormous potential in our relations.”
He also urged for the “clarification” or demarcation of the Line of Actual Control and an “early settlement of the boundary question.” President Xi also hoped that the boundary resolution could be resolved “quickly” as he said,
New Delhi to host India-China financial dialogue this year
India and China have agreed to hold the 7th India-China Financial Dialogue this year to enhance cooperation between the financial regulators of the two countries. A joint statement issued during the visit of Chinese President Xi Jinping states that the Indian side approved, in principle, the request of the Bank of China to open a branch in Mumbai.
The leaders agreed to explore new areas for economic cooperation in crosscutting fields including industrial investment, infrastructure development, energy conservation and environment protection, high-tech industry, clean energy and sustainable urbanization
The two sides also agreed to take positive steps towards rebalancing bilateral trade and addressing the existing structural imbalance in trade that has a bearing on its sustainability. Such measures will include cooperation on pharmaceutical supervision including registration, speedier negotiations on agro-products for two-way trade, stronger links between Indian IT companies and Chinese enterprises, and increasing services trade in tourism, films, healthcare, IT and logistics.
India and China also agreed to regular exchange of visits between the Defence Ministries and military leaders, so as to expand pragmatic cooperation in relevant fields. They also agreed to hold the fourth joint army training at a mutually convenient time, hold a Navy/Airforce joint exercise at a proper time, and strengthen cooperation in such areas as peace-keeping, counter-terrorism, naval escort, maritime security, humanitarian rescue, disaster mitigation, personnel training, and think tank communication.
India, China agree to resolve border dispute via 2005 pact
India and China have decided to resolve their long-standing border dispute according to the Agreement on the Political Parameters and Guiding Principles for the Settlement of the Boundary Question, a pact the two governments had signed in April 2005
Both sides have also decided to start talks on a civil nuclear agreement, to expand their civil nuclear energy programmes.
The 2005 agreement had virtually spelt out the contours of a settlement, taking into account the two sides’ “strategic and reasonable interests”. It had prescribed any settlement “should safeguard due interests of their settled populations in the border areas”.
In a joint statement issued after a meeting between President Pranab Mukherjee and his Chinese counterpart Xi Jinping on 19th September, the two countries said
Both sides have agreed to seek a fair, reasonable and mutually acceptable solution to the border dispute pertaining to the definition of the Line of Actual Control. They have tasked their respective special representatives with reaching political consensus on the issue, under the Working Mechanism for Consultation and Coordination on India-China Border Affairs.
The statement said regular visits into each other’s countries would be undertaken by defence ministries and military leaders of the two countries. Both will explore ways to achieve economic cooperation in new areas to address the rising trade deficit against India. These areas include industrial investment, infrastructure development, energy conservation and environment protection, the high-tech sector, clean energy and sustainable urbanisation.
India and China will also explore ways to establish joint ventures and collaboration in creating smart cities. In this regard, a dialogue mechanism will soon be set up between the finance ministry’s Department of Economic Affairs and China’s Development Research Centre of the State Council. The joint statement also reiterated China would invest $20 billion in India through five years - India inks free trade agreement with ASEAN
On 8th September, the Government of India signed the long-pending pact on services, trade and investment with the Association of Southeast Asian Nations (ASEAN). This will mean more market access to the 10 countries in the bloc for our professionals. India and ASEAN already have a free trade agreement (FTA) on goods; which took effect in 2010.
Once the FTA in services and investment gets ratified, the entire set of pacts will become a Comprehensive Economic Partnership Agreement. Nine of the 10 ASEAN countries have signed the deal but not the Philippines, due to domestic reasons. To become operational, all 10 must sign it and all the respective legislatures must ratify it. So, for that matter, must India’s Parliament.
ASEAN‘s members are Singapore, Malaysia, Thailand, Myanmar, Vietnam, Indonesia, the Philippines, Brunei, Cambodia and Laos.
The agreement on goods has not been ratified by all ASEAN members. The government had come under attack recently over the deal for the lack of increase in our exports to the region, while imports from many ASEAN member-states such as Singapore, Malaysia, Thailand and Indonesia have been rising.
Under the goods FTA, ASEAN countries and India had decided to lift import tariffs on a little more than 80 per cent of traded products by 2016. The FTA collectively covers a market of nearly 1.8 billion people and proposes to gradually slash tariffs for over 4,000 product lines.
ASEAN:
The Association of Southeast Asian Nations is a political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Cambodia, Laos, Myanmar (Burma) and Vietnam. Its aims include accelerating economic growth, social progress, sociocultural evolution among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully - India vowed $100 mn for port in Iran
India has earmarked $100 million for up gradation of Chabahar port in Iran so as to improve trade with Afghanistan and other Central Asian countries - Japan pledges $35 b for infra projects in India
Pledging to enhance bilateral cooperation, Japan on 1st September promised $35-billion assistance to India for the next five years towards funding next generation infrastructure projects, smart cities, rejuvenation of the Ganga and introduction of bullet trains.
Japanese funding will also be made available for public-private partnership (PPP) projects in the fields of manufacturing, clean energy, skill development, water security, food processing and agro industry, agricultural cold chain and rural development. This was stated in a joint statement after a summit meeting between Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.
Japan also promised to help India build a high-speed railway based on the ‘Shinkansen system’ for the Ahmadabad-Mumbai route
Civil nuclear deal
India and Japan agreed to enhance their defense and strategic cooperation to a new level. They have decided to speed up negotiations. While agreeing on greater defense equipment and technology cooperation, the two sides decided to expedite discussions on modalities for the sale of Japanese US-2 amphibian aircraft. - Indo-French initiative to forecast monsoon better
In a bid to predict the monsoon better than extant systems, India and France will launch a joint initiative by the year-end, according to the Ministry of Earth Sciences (MoES).
A final decision on the joint effort will be taken during talks between the two countries in October and the project will be launched in December, MoES Secretary Shailesh Nayak said. Speaking on the sidelines of a workshop on climate change and monsoon organized by INCOIS and ESSO-IITM here on Monday, Dr. Nayak said eight more countries were interested in joining the initiative. - Modi’s visit to Japan
Prime Minister Narendra Modi has said that India is replacing red tape with red carpet. Modi spoke at five events, including at a women’s university, the India-Japan Association and a Nikkei-organized gathering.
To Indians abroad, he advocated eating one meal together as a way of building family bonds and speaking in the mother tongue at the dining table.
He said in a seminar organized by the Japan External Trade Organization (Jetro) and Nikkei, Mr. Modi said India was attractive to Japan on account of three Ds — democracy, demography and demand. Modi said that 50 cities in India were in line to get new metro projects.
He said that several key decisions had been taken in the first 100 days of his government. Fifty-five per cent items had been freed from legal obligations as far as defense manufacturing was concerned. If Japan entered the defence manufacturing sector, where 49% FDI is now permitted, Tokyo could supply the needs of other small countries as well. - GMR inks MoU with Japanese bank
The GMR Infrastructure Limited signed a MoU with Japan Bank for International Cooperation (JBIC) for providing financial assistance to Japanese companies investing in Infrastructure projects of GMR Group. The MoU was executed during the course of Prime Minister Narendra Modi’s visit to Japan. - TCS training programme started
Prime Minister Narendra Modi, on 2nd September, flagged off a new training programme for Tata Consultancy Services trainee graduates in Japan by inaugurating the TCS Japan Technology and Culture Academy. The first batch of 48 TCS Japan trainees will proceed to India to undergo training for six-to-eight weeks at various TCS locations.
In April this year, TCS and Mitsubishi Corp announced that it was merging its IT operations in Japan to create a new global-scale player in the Japanese IT industry, with TCS having a 51 per cent stake in the new venture ‘Tata Consultancy Services Japan’.
India-Japan relations overview- India and Japan trade and economic partnership has been under-performing, belying the promise and potential. Bilateral trade at $16.29 billion in 2013-14 accounted for just 2.13 per cent of India’s total trade and barely 1 per cent of Japan’s.
- The low-profile trade relationship is especially disappointing considering how much Japan has to offer in terms of investment and technology, and how much India needs both. India may be one of the largest recipients of Japanese ODA (Official Development Assistance), but when it comes to foreign direct investment (FDI), it ranks low, well behind China.
- Between April 2000 and February 2014, Japanese companies cumulatively invested $15.97 billion in India, accounting for just 7.46 per cent of total FDI inflows into India, which in a way epitomises the state of the economic relationship between the second and third largest economies of Asia.
- Ever since India liberalised in the early 1990s, there has been steady interest among Japanese companies and investors — but they have often been frustrated by complicated procedures and cumbersome processes. Actually, Japanese companies willingly ceded market space in India to competitors from South Korea and China rather than deal with the red tape.
- China to develop industrial parks
China will set up two industrial parks in India, one each in Gujarat and Maharashtra, and the two countries are expected to sign agreements for this soon.
Chinese Consul-General in Mumbai, Liu Youfa, told that a park would come up near Pune on about 5 sq. km and another near Ahmadabad on about 10 sq. km. The park in Maharashtra will be focussed on automobile sector and that in Gujarat on the power sector. The Pune Park will be completed in about 12 years in three stages and is likely to see total investment of $5 billion. The first phase will be completed in three years.
Bilateral trade between the two countries during the first three quarters of this year (2014) is expected to be nearly $56 billion. In order to adjust the trade imbalance, there should be more two-way investments. China’s direct investments in India were to the tune of $1 billion and Indian investment in China was $4 billion, he said. - Reliance Foundation, University of Chicago join hands
Reliance Foundation, the philanthropic arm of Reliance Industries, and theUniversity of Chicago have announced a collaboration to develop innovative technology that will help train medical students and clinicians for better diagnosis and improved healthcare.
The partnership will develop cloud-based software applications that can train medical professionals using case studies written by experienced physicians and state-of-the-art clinical reasoning methods
The collaboration is also supporting doctors in real time with evidence-based clinical decision-making tools. - New Colombo Plan to get more Oz students to India
The New Colombo Plan, which supports Australian undergraduates to study and undertake internships in the Indo-Pacific region, was on 4th September launched by Tony Abbott, Prime Minister of Australia.
A series of memoranda of understanding between Indian and Australian institutes were also signed — between Mumbai University and Deakin University for short-term programmes; Calcutta University and the University of Western Sydney; BSE Institute and the University of Western Sydney; and the Indian Institute of Technology-Madras and the Swinburne University of Technology, among others.
The New Colombo Plan involves a scholarship programme for study of up to one year and internships or mentorships, and a flexible mobility grants programme for short- and long-term courses, internships, mentorships, practicums (practical section of a course of study) and research. It is open to Australian undergraduates aged 18-28.
The New Colombo Plan intends to encourage two-way flow of students in the region. The Australian government has committed $100 million over five years to the plan.
A 2014 pilot phase currently supports around 1,300 mobility programme students and 40 scholarship holders for courses in Indonesia, Japan, Singapore and Hong Kong. Next year, based on the response, this plan will be expanded to cover India and others, and up to 40 scholarships would be awarded to allow Australian students spend a year at Asian institutions.
In 2015, the plan aims to support approximately 60 scholarships and provide around $8 million in mobility grants for Australian undergraduate students. - India signs civil nuclear agreement with Australia
The Union Government on 5th September signed a civil nuclear agreement with Australia to address India’s growing need for power.
The deal, signed in the presence of Indian Prime Minister Modi and visiting Australian Prime Minister Tony Abbott, officially marked an end to the ban imposed by Australia on selling uranium to India. The ban was lifted in 2012, when talks for the nuclear deal began.
This will be the first such deal signed by the NDA government. India has similar agreements with the US, Canada, the UK, South Korea and France, among other countries.
The memorandum of understanding (MoU) for the deal, Cooperation in the Peaceful Uses of Nuclear Energy, was signed between R K Sinha, secretary, department of atomic energy, and Patrick Suckling, Australia’s high commissioner to India, following a meeting of the two prime ministers.
The agreement will promote cooperation in peaceful uses of nuclear energy. It recognises India’s commitment and use of nuclear energy with a view to achieving sustainable development and strengthening energy security. Australia can play the role of a long-term reliable supplier of uranium to India. It provides for supply of uranium, production of radio isotopes, nuclear safety and other areas of cooperation the MoU stated.
Both sides also signed a parallel nuclear safeguards agreement, as India isn’t a signatory to the Nuclear Non-Proliferation Treaty.
This was also the case when India had signed a civil nuclear deal with Canada Australia has about 40 per cent of global uranium reserves, of which it exports about 20 per cent, making it one of the largest exporters of the commodity. It doesn’t have any nuclear power plants of its own.
However, uranium supplies from Australia, which stands to earn billions of dollars through such shipments, to India could be limited because of Australia’s domestic laws.
Besides, it might take four-five years for the shipments to start. According to Australian rules, uranium mining is limited to only a few mines and most are bound by long-terms contracts.
India has 21 operational nuclear power reactors, across six power plants, with an installed capacity of 5,302 Mw; these produce 29,664.75 GWh of electricity. Seven more reactors, under construction, are expected to generate an additional 6,100 Mw, according to official statistics.- Under the nuclear power generation programme, India hopes to increase its nuclear capacity to 63,000 Mw by 2032 by adding about 30 reactors, at an estimated cost of $85 billion.
- The civil nuclear co-operation pact with Australia will give a fillip to India’s nuclear power generation programme.
- The country currently generates 4,780 MW from six nuclear plants
- Share of electricity from nuclear power plants is only 3.14 per cent of the total electricity generation capacity of 249,488 GW as of June 30, falling from 3.68 per cent in 2011-12.
- India currently gets uranium from France, Russia, Kazakhstan and Uzbekistan and has total requirement of around 1,000 tonne a year.
- According to the World Nuclear Organization almost half of the Australian reserves are in the under $80/kg price category. This is due to the easier extraction of the mineral from the mines there.
- Electricity tariffs from nuclear power plants are cheaper than most coal-based plants in India. But, the low generation capacity in India means that in the short term, the nuclear power sector is unlikely to be the answer for the country’s demand for cheap electricity.
- According to the Department of Atomic Energy4, the maximum tariff from nuclear plants is Rs 3.41 per unit while the minimum tariff is Rs 0.95 per unit.
- This is almost comparable to coal-based plants at the mine pit head, which have a maximum and minimum tariff of Rs 3.19 per unit and Rs 0.87 per unit, respectively.
- Non-pit head based plants have even higher tariff with the maximum being Rs 5.29 per unit and minimum being Rs 3.32 per unit.
- Even hydro power plants produce costlier electricity. The maximum and minimum tariff from hydro plants are Rs 5.77 per unit and Rs 0.86 per unit, respectively.
- But with generation only at 34,277 gigawatt hours (GWH) in 2013-14, as compared total generation of 967150 GWH, nuclear power provides only a small portion of India’s electricity requirement.
- Australian uranium to be used in reactors under IAEA safeguards
A day after it signed nuclear cooperation deal with Australia, India on 6th September said it will use the fuel procured through this deal for reactors that are under the UN watchdog, International Atomic Energy Agency (IAEA) safeguards.
Secretary, Department of Atomic Energy, Ratan Kumar Sinha said that Australian uranium or fuel procured through any international cooperation would be used in reactors, which were under IAEA safeguards, as per the Indo-US nuclear cooperation agreement.
He also reiterated that India will not sign Non-Proliferation Treaty (NPT).
The DAE Secretary said under the Indo-US civil nuclear deal, there is a separation plan and some facilities have been under IAEA safeguards. These facilities are eligible for international supply of uranium.
What is IAEA?
The IAEA is the world's center of cooperation in the nuclear field. It was set up as the world´s "Atoms for Peace" organization in 1957 within the United Nations family. The Agency works with its Member States and multiple partners worldwide to promote safe, secure and peaceful nuclear technologies.
The IAEA Secretariat is headquartered at the Vienna International Centre in Vienna, Austria. Operational liaison and regional offices are located in Geneva, Switzerland; New York, USA; Toronto, Canada; and Tokyo, Japan. The IAEA runs or supports research centers and scientific laboratories in Vienna and Seibersdorf, Austria; Monaco; and Trieste, Italy. - Collaboration in healthcare
Australia on 5th September announced the extension of the Australia-India Strategic Research Fund (AISRF) for a further four years and also pledged Australian dollars (AUD) 20 million for the initiative. Australian Prime Minister Tony Abbott made the announcement after a visit to the Jai Prakash Narayan Apex Trauma Centre at AIIMS on 5th September.
The two countries will also cooperate in the areas of a potential malaria vaccine which has been supported by the strategic research partnership. Australian and Indian governments have joined hands through the Australia-India Strategic Research Fund Grand Challenge Scheme to find the best ways of treating injured people.
India and Australia will collaborate in the areas of preventive healthcare, trauma care, geriatric medicine, diabetes research and mental illnesses; this was decided at a meeting between Mr. Abbott and the Union Health Minister Harsh Vardhan. - Japan seeks exemption from MAT for its companies in India
Japan has asked India to at once exempt Japanese manufacturers operating in India from withholding and Minimum Alternate Tax (MAT). Minister, Embassy of Japan, Isomata Akio, on 4th September, asked for this country-specific concession. He said he was raising the demand in view of Japan’s commitment to pledging investments worth Rs.2-lakh crore in India over the next five years. He also said that if MAT continued to be slapped on the Indian subsidiaries of Japanese companies it could hinder Japanese investments into India.
For Indian companies, the MAT rate is 19.06 per cent of profits or if education cess and surcharge are applicable then the rate goes up to 20.01 per cent. The rate of MAT for foreign companies is 19.06 per cent and where education cess and surcharge are applicable it is 19.44 per cent.
Two-way annual trade between the two countries was $16.31 billion as on March 31, 2014, down from $18.5 billion in the previous year. Japanese exports to India fell 23 per cent in 2013-14.
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