Citizens’ Research Collective on SEZ

Moscow, November 12, 2007 (PTI): Russia on Monday said it was ready to actively participate in the development of a Special Economic Zone (SEZ) being set up in Orissa as part of the efforts to boost bilateral economic ties with India.

“I would like to mention the special progress by the two sides in setting up a joint venture for the production of titanium dioxide and other titanium products in the state of Orissa,” Russian Premier Viktor Zubkov said while welcoming Prime Minister Manmohan Singh on Monday morning.

The Russian comp anies are ready to ‘actively participate’ in the development of SEZ in Orissa, he said.

Zubkov said his government has allowed the second largest public sector bank Vneshtorgbank (VTB) to open its branch in India to facilitate bilateral trade and investments.

India already has two banks in Russia, ICICI and Commercial Bank of India, a joint venture of State Bank of India and Canara Bank.

At their about 40-minute meeting at the Russian White House, Singh and Zubkov also agreed to continue the dialogue on the ‘traditional’ energy cooperation.

Zubkov also assured the Prime Minister that Moscow was ready to facilitate B2B (business to business) ties with India, including through generating awareness among the business communities of the two countries.

Singh and Zubkov also expressed satisfaction at the solution of long pending issue of the utilisation of rupee debt funds for Russian investments and trade with India through General Letters of Exchange.

“I am happy that we have been able to satisfactorily resolve this long-pending issue. It will benefit the economic cooperation between the two countries,” Singh said.

Earlier in his interview to RIA Novosti Singh noted that trade relations between India and Russia had lagged far behind compared with the close political interaction.

Currently the bilateral trade stood at around $3-4 billion and the two nations have set the target of boosting it up to $10 billion by the year 2010.

Manmohan Singh is the first Indian Prime Minister to visit the Russian White House for a formal meeting with the Russian Premier.

Although, Indian bureaucrats were reluctant to arrange Singh’s meeting with Zubkov, however, now there is a realisation that it was a good idea for the Indian Prime Minister to interact with one of the likely heirs of President Vladimir Putin next year.

Source: Daily News & Analysis (DNA)