Indian effort to simplify trade with Russia

New Delhi has cleared the way for Russian exports to India, identifying 10 Russian banks whose guarantees will be accepted by Indian banks. Prime Minister H D Deve Gowda conveyed this to his Russian counterpart Viktor Chernomyrdin at the talks on Wednesday.

Deve Gowda also said guarantees of other Russian banks, backed by a counter-guarantee by these 10 banks, would also be accepted.

Chernomyrdin also urged Deve Gowda to re-examine the issue of value-added tax as applied to Indian exports to Russia, stating it hampered the growth of Indian exports. He suggested a committee be constituted to study the issue.

It was also decided that the Russian experts would soon get in touch with their Indian counterparts to prepare a detailed project report for the construction of two nuclear power reactors at Kudumkulam in Tamil Nadu.

The Russians said it would take over two years to prepare the project report at a cost of Rs 2 billion to Rs 2.5 billion, to be borne by India. The entire project is expected to cost between Rs 160 billion and Rs 170 billion and will take 10 years to complete. The two nuclear power reactors would have a capacity of 1000 MW each, they said.

Foreign Secretary Salman Haider said it was decided that the two nations’s co-operation in military technology should continue till 2000 and enhanced in the 21st century. He said that while both sides reaffirmed that Indo-Russian ties remained a priority in the foreign policies of both countries, trade was still low at $ 2 billion. This had to be improved, it was decided, with the Russians promising to increase investment in India.

RELATED LINK:
Russia wants its money back, now