Press Information Bureau

Government of India

Ministry of Commerce & Industry

16-June-2011 19:34 IST

India Russia Express Intent for CECA 9000 Crore Steel Plant to Come Up Near Bellary Our Common Target is to Achieve Usd 20 Billion in Trade by 2015: Anand Sharma Co Chairs 2nd Meeting of Inter-Governmental Commission with Russian Deputy PM

India and Russia today expressed the political intent to move towards a Comprehensive Economic Cooperation Agreement. The development came during the bilateral meeting between the Union Minister of Commerce and Industry Shri Anand Sharma and the Minister of Economic Development of the Russian Federation Elvira Nebullina at St Petersburg today. Both the side indicated that the dialogue will enable the two countries to realize the potential of cooperation that exist between the two countries. Russian side informed that they will first initiate the consultation with their custom partners on the issue. Shri Sharma said “This economic cooperation can no longer be limited to purchase of defense equipment or investment in oil and gas, although these are highly valued by both countries, but must extend beyond government to government trade and investment. Our common target is to achieve USD 20 billion in trade by 2015 and this can only be done through broad based extensive business cooperation.”

Mr Anand Sharma also took up the market access in the Russian Federation for Indian products specially agri products and pharma. The Minister outlined specific steps that need to be taken in this direction such as, participating in the Pharma 2020 Programme of Russia by setting up production units in Russia – this would require suitable facilitation by Russia; streamlining registration process; sharing of information on drugs that are imported by Russia and on assessed production volumes of strategically identified medicines; setting up the Task Force agreed under MOU for Pharma and Bio-pharma sectors; market access for drugs that are exported to USA, EU and Japan, etc. The Minister said “there is considerable scope for enhancement of trade as well as investments in the pharmaceutical sector. The Indian pharmaceutical products are of international standards and cheaper than other markets on an average by 30-40%.”

Shri Anand Sharma co chaired Inter-governmental Commission, who has led bilateral economic cooperation with the Deputy Prime Minister of Russia Sergei Ivanov. With regard to business deals NMDC, the country's largest iron ore producer, and Russian steel maker OJSC Severstal took a firm view that both firms would invest a total of Rs 9,000 crore in setting up the plant near Bellary in Karnataka. The plant will have an initial capacity of two million tonnes a year (MTPA) expandable to five MTPA. The two firms signed a memorandum of understanding (MoU) on 10.12.2010 to float a 50:50 joint-venture company that would set up a five million tonne steel plant in Bellary, Karnataka. There is a lot of interest for collaboration in IT and Telecom sectors

Furthermore, it was agreed to form six working groups under India Russia Working Group on Trade and Economic Cooperation (IRWGTEC) with Government and private participation on IT, Pharma, Banking and finance modernization, precision engineering and nano technology.

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Comprehensive economic cooperation intent expands bilateral trade and investment, including pharma collaboration and a planned steel joint venture. India and Russia signalled intent to pursue a Comprehensive Economic Cooperation Agreement to expand bilateral trade and investment, with preparatory consultations between customs authorities. Sectoral measures include pharma cooperation-establishing production units, streamlined registration, information sharing and a Task Force under an MOU-and an industrial joint venture between NMDC and OJSC Severstal to build an expandable steel plant near Bellary. Six working groups under the India Russia Working Group on Trade and Economic Cooperation will focus on IT, pharma, banking and finance modernization, precision engineering, and nanotechnology.