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India and World: August 2010

Reprocessing accord signed

India and the U.S. signed the much-debated agreement on modalities for reprocessing spentnuclear fuel, under the civilian nuclear deal between the two countries.

The agreement on arrangements and procedures for reprocessing was signed at a StateDepartment ceremony by Indian ambassador Meera Shankar and U.S. Under Secretary of Statefor Political Affairs William Burns.

Pursuant to Article 6(iii) of the bilateral 123 Agreement' on civilian nuclear cooperation, theagreement was hailed by the Indian embassy here as a significant step which highlights thestrong relationship and growing cooperation between India and the U.S. Upon entry into force,it will enable reprocessing by India of United States-obligated nuclear material underInternational Atomic Energy Agency safeguards.

Indias target was to increase the installed capacity more than seven fold to 35,000 MWe by theyear 2022, and to 60,000 MWe by 2032.

In this context, the government had already designated two sites for nuclear power plants to beestablished in in the States of Andhra Pradesh and Gujarat.

Shyam Saran being sent as special envoy to Nepal

In an effort to end the stalemate in Nepal over the election of a new prime minister, India issending its former Foreign Secretary, Shyam Saran, as special envoy to Kathmandu with amandate to engage all political parties, including the Maoists, and help build a consensus on theformation of a government that can take the peace process and the task of Constitution writingto a conclusion by next year's new deadline.

Russian firm offers knowhow

A leading Russian manufacture Transas group, which produces navigation systems (marine andaviation) and training simulators is ready to share with India sophisticated technology forbuilding flight simulators to train military pilots. Their use would help to reduce operationalcost and the accident rate in the Indian Air Force.

The company has supplied helicopter simulators for several pilot training centres in Russia. Ithas built a full motion simulator complex for Venezuela to operate Mikoyan Mi-17 militarytransport helicopters it recently purchased from Russia.

India has a large fleet of Mikoyan helicopters, and four years ago, signed a new contract to buy80 Mi-17IV helicopters.

Aviation simulators help to slash cost on pilot training and save aircraft and lives. If India hadmotion-based pilot training simulators it wouldn't have had such a high rate of accidents with itsMiG-21 fighters.

The IAF has lost about 300 MiG-21 interceptor planes around a third of the entire fleet overthe past four decades, many of which were caused by pilot error. New contracts for the purchaseof Russia-built warplanes, such as MiG-29K jets, to be deployed on the Vikramaditya aircraftcarrier, include the supply of simulators. The Transas offer will enable India to join an elitecountries capable of manufacturing top-notch full motion flight simulators.

India, Iran discuss regional solution' in Afghanistan

India and Iran rounded off extensive discussions on Afghanistan, which included an Indo-

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Iranian initiative to develop a new trading route to the land locked country and a regionalapproach to bringing peace and stability.

The talks appear to have further coordinated Indian and Iranian positions on nationalreconciliation in Afghanistan. Both countries agreed that the Afghan Constitution would be thebasis and pillar for any action.

Both sides want to accommodate only those militia groups that accept the suzerainty of Kabulin governing Afghanistan.

The issue of modernisation of Iranian port of Chabar, to give a fillip to economic activity inAfghanistan was also discussed in detail.

India has proposed expanding the capacity of the port, currently working at its full handlingcapacity of 2.5 million tonnes of cargo per year from two active berths, by five times andlinking it to the Iranian town of Bam, on Afghan border, with a railway line. From there goodsare proposed to be taken to Afganistan through the Zaranj-Delaram road, built by India, whichin turn links up with the garland highway connecting all major Afghan cities.

As Foreign Secretary Nirupama Rao recently noted, the Zaranj-Delaram road has alreadyrevived the economy in Nimroz province of Afghanistan. She is confident that the link up withChabar would enable it to gain from transit of goods to Central Asia, in addition to the local

economy benefiting from access to a sea port.

Pranab reviews growing India-Bangladesh ties

Union Finance Minister Pranab Mukherjee made a brief visit to Dhaka for talks withBangladesh leaders on the growing cooperation between the two neighbours.

This is the first visit by a key Indian leader since Prime Minister Sheikh Hasina's visit to NewDelhi in January.

One of the main objectives of Mr. Mukharjee's visit was to witness the signing of $1-billioncredit facility offered by India to Bangladesh. the agreement was signed by the chief of theEXIM Bank of India and the Secretary of Bangladesh's Economic Relations Division (ERD).

The amount will be used for implementing 14 projects, mostly related to the development ofrailway infrastructure in Bangladesh, the upgrading of the Ashuganj river port, construction ofroads and bridges to facilitate trans-shipment of Indian goods to its north-eastern region throughBangladesh, purchase of double-decker buses from India and setting up of a power gridlinebetween India and Bangladesh.

The main features of the credit line agreement are rate of interest 1.75 per cent per annum(fixed); commitment fee 0.5 percent per annum on unutilised credit after 12 months from thedate of contract approval; and repayment period of 20 years (including a grace of 5 years).

In her part Bangladesh said his country would serve as the best transit service-providing country

in the South Asian region. Bangladesh could provide transit facilities to Bhutan, India, Nepal,Myanmar and China . Bangladesh had agreed to revive the land customs stations along theTripura Mizoram border, build a bridge over the common river Feni at Sabroom-Ramgarhpoint, and strengthen other border infrastructure.

Rotary Goodwill meet may be held in March

A Rotary South Asia Conference for Development and Co-operation may be held in March2011 in Colombo, Chennai or New Delhi, following a suggestion to the effect by a group ofsenior Rotary International office-bearers, led by president-elect Kalyan Banerjee.

Around 1,000-1,200 delegates from India, Pakistan, Sri Lanka, Bangladesh and Nepal areexpected to attend the conference, which will be in the form of a revival of the successful

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Goodwill Conferences held by Rotary in earlier years, the representatives said.

At the two-day discussion on peace in South Asia, held in Chennai, representatives from thefive south Asian countries said there was a felt need for integration in the region along the linesof ASEAN (Association of Southeast Asian Nations) and the Eurozone. As an immediate step,Rotary International would write to the Pakistan government to see if a medical mission couldbe allowed into the flood-hit areas to support the people.

3 Indian soldiers killed in Congo

Three Indian soldiers, part of the U.N. peacekeeping force in Congo, were killed in a rebelattack in the Kirumba province.

Indiato suspend defence exchanges with China

India has decided to suspend defence exchanges with China following Beijing's refusal to allowthe Army's Northern Command chief, Lt. Gen. B.S. Jaswal to join a military delegation for ahigh-level visit.

In retaliation, India has refused to allow two Chinese Army captains to attend a defence courseand a colonel to speak at a higher defence course. While border meetings between Armypersonnel will continue as before, a cloud hangs over future military exchanges and even a joint

exercise. It will remain so until China unties the knot it has tied, said senior officials.

India's flood relief through U.N.

New Delhi has accepted Islamabad's suggestion to route its offer of $5 million in reliefmaterials for flood victims through the United Nations system.

From the time India made the offer, the Foreign Office officials have been maintaining that itwould be best if the relief material came through the U.N. system as this would remove anyirritants in the logistics of transporting goods between the two countries and also addresswhatever sensitivities Pakistan has about taking direct aid.

Information on money stashed away in Swiss banks now easier

India and Switzerland signed a protocol to the Double Taxation Avoidance Agreement thatwould enable the government get information about some of the wealth illegally stashed awayin Swiss banks.

The revised Double Taxation Agreement contains provisions on the exchange of information inaccordance with the OECD(Organisation for Economic Cooperation and Development)standards, which were negotiated in line with the parameters decided by the (Swiss) FederalCouncil, said a statement from the Swiss Federal Department of Finance.

It became mandatory for Switzerland to open up its confidentiality-driven banking system afteradopting the OECD's standards on transparency last year.