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INDIA SURGES AHEAD NEWS
March 2006
POLITICS & POLICY
 
Indo-Iran Gas Link Deal in June
 

Pakistan, India and Iran are likely to sign their $7 billion gas pipeline deal in June, in defiance of US pressure, Pakistan's and India's oil ministers said on Sunday. The oil ministers of Iran and Pakistan had said the three countries were very near final agreement on the project to pump Iranian gas through Pakistan to India. Iranian Oil Minister Kazem Vaziri had said he expected the signing to take place in Tehran in June, but Indian and Pakistan had not given a precise time scale. "Most probably it will be signed in June," Amanullah Khan Jadoon said on Sunday. Indian Oil Minister Murli Deora also said on Sunday June signing was likely and that he was impatient for progress on the project first mooted more than a decade ago. "These things have taken so much time. We are all three parties sincerely dedicated to this project," he said. Progress has been slow because of hostility between India and Pakistan and, more recently, US opposition to Iran because of its nuclear programme. When asked about US pressure, Pakistan's energy minister said: "That's the (Pakistan) president's problem. I'm the energy minister. I must take care of energy needs." The pipeline through Pakistan would link Iran's abundant gas reserves, the world's second biggest, to India's booming economy and it would carry 150 million cubic metres per day of gas for 25 years, Vaziri said.

Courtesy: Times of India, April 24,2006

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India-Bahrain Ties Set to Take New Dimensions
 

India's strong relations with Bahrain are poised to take "new dimensions," including in political, economic and cultural fields, minister of state for external affairs, E Ahamed has said. Ahamed, who arrived on a two-day visit to Bahrain last night, will be extending an invitation from President A P J Abdul Kalam to King Hamad bin Isa Al Khalifa to visit India. The minister will also hold talks with Bahraini authorities on ways to take forward the economic cooperation and bilateral relations between the two countries. "I will hand over a special message from President A P J Abdul Kalam to His Majesty King Hamad," said Ahamed. "We have always enjoyed a strong relationship with Bahrain, and it is now poised to take new dimensions in all fields, including political, economic and cultural areas," Ahamed was quoted as saying by the 'Gulf Daily News'. Politically, the Gulf region is a part of India's extended neighbourhood, he said. "During the recent GCC-India Industries Conference held in Oman, the Muscat Declaration was issued stressing the need to strengthen India's relationship with each GCC (Gulf Cooperation Council) state," he said. "The Qatari Amir visited India last year and the Saudi King in January this year. We are now looking forward to the visit of His Majesty. The Gulf region is going through significant change and transformation and there is also a welcome attitudinal change towards India," the minister said.

Courtesy: The Economic Times, April 23, 2006

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Cabinet Approves Aviation Pact With US
 

The Union Cabinet on Tuesday approved the Indo-US aviation agreement, that provides for assistance by American civil aviation bodies to their Indian counterparts in modernising airports, aviation infrastructure, technology, procedures and training. The pact was initiated during US transport secretary Norman Mineta's visit to India last year. India already has a similar arrangement with the European Union in place. The Memorandum of Agreement provides for assistance by the US Federal Aviation Authority (FAA) in developing and modernising civil aviation infrastructure in managerial, operational and technical areas. Under this umbrella accord, FAA would provide assistance in developing, improving and operation of aviation infrastructure, standards, procedures, policies, training and equipment. Besides training personnel, it would also provide for inspection and calibration of Indian aviation equipment and air navigation facilities and assist in airport certification besides helicopter operations and safety initiative. The agreement, which would create enabling provisions for seeking specific assistance from the FAA, was an essential requirement also for receiving assistance from the US agency. The draft agreement was examined by the Civil Aviation Ministry in consultation with various organisations like DGCA, AAI, Hindustan Aeronautics, National Aerospace Lab and the ISRO.

Courtesy: The Economic Times, April 19, 2006

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India, Britain to Collaborate in "World-Class" Research
 

India and the United Kingdom will collaborate in ``world-class'' research under a new major initiative launched here on Tuesday to boost cooperation in higher education between the two countries. The U.K-India Education and Research Initiative, backed by British Government funding, will link centres of academic excellence in India and the U.K. through 70 new research projects over the next five years. It will also offer fellowships to Indian students in partnership with universities there. Prime Minister Tony Blair, who first announced the initiative during his visit to India last September, said it would lay the ground for the two countries to become ``each other's partners of choice in education,'' and to collaborate on ``world-class research.'' "Backed by a £12 million of Government money, and nearly £5 million in cash or kind from private sector partners, the initiative will allow split PhDs and research fellowships, and increased academic exchanges,'' Mr. Blair said. Writing in The Guardian ahead of the launch, he said: ``No one who visits India can fail to be impressed by the huge advances the economy and education system are making, and I returned determined that we needed radically to improve our links with a country that is producing hundreds of thousands of graduates each year.'' Besides countries such as China, Malaysia and Singapore which traditionally sent students to Britain now had their own ``bourgeoning'' higher education sectors. Recently, Chris Patten, Chancellor of Oxford University, visited India to tap into the booming education market there. There is concern that American universities are overtaking their British counterparts in attracting Indian students. There are nearly 80,000 Indian students on American campuses compared to 17,000 in Britain.

Courtesy: The Hindu, April 19,2006

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Indian, Chinese Companies Plan JVs Abroad
 

A section of the Indian business has hit upon what it expects to be an effective formula for bonding with Chinese industry. The move involves Indian and Chinese firms setting up JV projects in third countries. "Many of our businesses have strong footholds in foreign countries. They can join hands with Chinese companies to set up projects in third countries. It is a win-win strategy for both sides, "Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI). A beginning has already been made with state-run Chinese and Indian oil firms entering into JVs in third nations. FICCI is trying to initiate a new strategy to bring about such partnerships in the private sector, he said. Mitra was briefing reporters in the wake of a four-day China tour by a 12-member delegation of CEOs of major Indian companies, which began on Sunday. The high-powered delegation represents a wide ranged of Indian industry including manufacturing, software, biotech, energy and textiles. It is led by FICCI President and chairman of Gillette India, Saroj Kumar Poddar. The delegation will hold a meeting with China Council for Promotion of International Trade officials and will also visit Xian and Shanghai. This is the first visit of a CEO-level team in this year of India-China friendship, Ambika Sharma, FICCI senior director, said. FICCI is trying to negotiate a deal to hold an exhibition for Indian tourism industry in September or October in order to draw Chinese tourists to India. Buddhism related tourists sites and pilgrimages in India should be an area of attraction for Chinese tourists, Mitra said. Though Chinese industry has grown at an impressive rate with focus on supply-side management, it is deficient in some areas where Indian contribution could be useful, Atul Dalakoti, director at Ficci's China office said.

Courtesy: The Times of India, April 16,2006

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Indo-Pak Talks an Opportunity to Resolve Kashmir: Khan
 

Asserting that India-Pakistan ties have improved, former Pakistani Foreign Secretary Mir Humayun Khan has said the ongoing dialogue process between the two countries was an opportunity for resolving the Kashmir issue as per the "wishes of people of undivided Jammu and Kashmir". "People-to-people contact between the two countries have improved the ties between New Delhi and Islamabad and it is an opportune time to find a solution to the Kashmir issue as per the wishes of the people of the undivided Jammu and Kashmir," he said while interacting with the activists of J and K Forum for Regional Voices here last evening. The Forum, which in collaboration with Delhi-based Centre for Dialogue and Reconciliation organised a two-day 'intra-Kashmir dialogue' at Jammu on April 12-13, hosted a reception for the Pakistani delegation here last evening.However, no mainstream politician or separatists barring a representative of Democratic Freedom Party Mohammad Abdullah Tari, were present at the reception.Khan, who was part of the 12-member delegation from Pakistan and Pakistan-occupied Kashmir that took part in the deleberations, said "the ongoing peace process is a serious and sincere effort." "This time there is change of hearts in the public of both the countries. Public opinion has changed in both India and Pakistan and a realisation has come that the main party to the Kashmir issue, the Kashmiris, should be listened to," Khan, who served as the Ambassador of his country in India for five years, observed.

Courtesy: The Pioneer, April 16,2006

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India Priority Country For Afghanistan
 

India is a priority country for attracting business and investment into Afghanistan and the presence of Indian industry will go a long way in convincing other overseas investors about the business-friendly policies being adopted by Kabul, the leader of the Afghan business delegation to India, Omar Zakhilwal, told a meeting organised by FICCI here on Tuesday. He expressed the delegation's desire to have a series of road shows of Afghan products in different parts of India.

Courtesy: The Hindu, April 12, 2006

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India to Back U.S. Entry Into SAARC as Observer
 

India is all set to back the entry of the United States into the South Asian Association for Regional Cooperation (SAARC) as an observer, senior External Affairs Ministry officials told The Hindu on Tuesday. The issue is likely to figure at a two-day meeting of Foreign Secretaries of the seven SAARC nations that began in Dhaka on Tuesday. SAARC leaders decided, in principle, at their 13th summit meeting in Dhaka in November 2005, that China and Japan be associated as observers. "They [the SAARC leaders] also welcomed and agreed in principle with the desire of the People's Republic of China and Japan to be associated as observers. The Council of Ministers will decide the modalities in this regard at their 27th meeting in July 2006," the Dhaka Declaration of November 13, 2005, said. "They also acknowledged the renewed interest of other regional and international organisations, bodies and entities to cooperate with SAARC in various collaborative endeavours in accordance with the objectives and priorities of SAARC," the Declaration added. With little prospect of any opposition, it is likely that both China and the U.S., along with Japan, will be accepted as "observers" of the grouping by the time India hosts the 14th SAARC summit in 2007. It may be noted that India has been given observer status in the Shanghai Cooperation Organisation (SCO), a grouping in which China and Russia are key players. SAARC leaders also decided to admit Afghanistan as a full member of the organisation (as distinct from conferring observer status) in Dhaka.

Courtesy: The Hindu, April 11, 2006

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Security, Trade Focus of Talks
 

India and Afghanistan today expressed their concern at the rising number of terror incidents in the landlocked nation, with security and trade dominating the bilateral talks. India also pledged an additional assistance of $50 million for Afghanistan. The visiting Afghan president, Mr Hamid Karzai, who is on a four-day tour, today held one-on-one and delegation level talks with the Prime Minister, Dr Manmohan Singh, at Hyderabad House. Dr Singh in his opening remarks noted that the "security situation" in Afghanistan was part of the discussions, where both sides "expressed concern at increased terrorist activities in some parts of the country". But the Afghan president was careful not to get into a blame-game vis-à-vis Pakistan, only asserting that "all of us in the region should join hands to fight the menace of terrorism". "The dividend of peace is for the entire region," said Mr Karzai. He added that the Afghan government talked regularly to Pakistan on this topic, stating that "more effective" action could be devised by all in this region. The PM noted that not just India and Afghanistan, even Pakistan was "not immune to terrorism". He said that India was all for "pooling our knowledge and intelligence" to deal with this "menace". Both countries today signed three memoranda of understanding in the field of education, rural development and standardisation. India also announced its pledge of another $50 million, thereby taking the total assistance to Afghanistan to $650 million. Out of that, $200 million has already been spent on projects. The issue of transit of Indian goods through Pakistan to Afghanistan and beyond was raised by the Indian side during talks, with Dr Singh asking Mr Karzai to use his "good offices" to persuade Pakistan. Dr Singh said that he had "not lost hope" of Pakistan relenting on the subject. "Interestingly, he also said that in reciprocal, Pakistan should also access Indian roads for transit to East Asia."

Courtesy: The Statesman, April 11, 2006

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Security, Trade Focus of Talks
 

India and Afghanistan today expressed their concern at the rising number of terror incidents in the landlocked nation, with security and trade dominating the bilateral talks. India also pledged an additional assistance of $50 million for Afghanistan. The visiting Afghan president, Mr Hamid Karzai, who is on a four-day tour, today held one-on-one and delegation level talks with the Prime Minister, Dr Manmohan Singh, at Hyderabad House. Dr Singh in his opening remarks noted that the "security situation" in Afghanistan was part of the discussions, where both sides "expressed concern at increased terrorist activities in some parts of the country". But the Afghan president was careful not to get into a blame-game vis-à-vis Pakistan, only asserting that "all of us in the region should join hands to fight the menace of terrorism". "The dividend of peace is for the entire region," said Mr Karzai. He added that the Afghan government talked regularly to Pakistan on this topic, stating that "more effective" action could be devised by all in this region. The PM noted that not just India and Afghanistan, even Pakistan was "not immune to terrorism". He said that India was all for "pooling our knowledge and intelligence" to deal with this "menace". Both countries today signed three memoranda of understanding in the field of education, rural development and standardisation. India also announced its pledge of another $50 million, thereby taking the total assistance to Afghanistan to $650 million. Out of that, $200 million has already been spent on projects. The issue of transit of Indian goods through Pakistan to Afghanistan and beyond was raised by the Indian side during talks, with Dr Singh asking Mr Karzai to use his "good offices" to persuade Pakistan. Dr Singh said that he had "not lost hope" of Pakistan relenting on the subject. "Interestingly, he also said that in reciprocal, Pakistan should also access Indian roads for transit to East Asia."

Courtesy : The Statesman, April 11, 2006

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Cyprus Welcomes Nuclear Agreement
 

Cyprus, a member of the Nuclear Suppliers' Group (NSG), has welcomed the civilian nuclear understanding reached between India and the United States in March this year. In an interview to The Hindu ahead of his visit to India from Tuesday, Cyprus President Tassos Papadopoulos said on Thursday, "Cyprus welcomes the agreement between India and the U.S. on full international cooperation in civilian nuclear energy. "Both sides [Cyprus and India] agree that such cooperation would help in addressing concerns related to global energy security and environmental protection. Cyprus conveys its support for India's efforts for the promotion of civilian nuclear supply for the benefit of her economic development and prosperity ... ," Mr. Papadopoulos said. The 72-year-old President spoke warmly of his country's relationship with India, recalling that New Delhi had taken a principled position on the Cyprus issue over the years. "Throughout these years, India has always been a friendly country, supporting the principles [behind] a solution of the Cyprus problem, the various resolutions of the United Nations ... territorial integrity, [and] sovereignty of Cyprus," he said. "Everybody knows India is a country with a great culture [and] history, and it plays a major role in world affairs. Now, India is one of the leading countries in the rate of growth, especially in information technology," Mr. Papadopoulos said.

Courtesy: The Hindu, April 10, 2006

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Singapore, India May Expand Economic Pact
 

India and Singapore "will look at how to expand the scope and benefits of the CECA [Comprehensive Economic Cooperation Agreement]" that they had signed last year. The upbeat indication, spelt out by Singapore's Trade and Industry Minister Lim Hng Kiang after the CECA review here on April 1, is expected to set the stage for discussions at the "Connecting India" summit on April 12 and 13. The "Asia Pacific Business Summit" on this theme is being organized by the Singapore Indian Chamber of Commerce and Industry (SICCI) as an exclusive event under the "Celebrating India" project of the Indian High Commission, here. As India's first comprehensive economic pact with any country, the CECA came into effect last August after it was signed over a month earlier. Indicating that the CECA expansion would be considered over the next six weeks from now, Mr. Kamal Nath said the discussions would cover the inclusion of more tariff lines for trade in goods and some "amendments" of the existing provisions. Asked whether the proposed CECA expansion would specifically cover the possibility of a Singapore's proactive role by Singapore to promote a special economic zone in India, Mr. Kamal Nath said "a mindset change has to take place." Some Singapore entities were already investing in India through the Mauritius route for tax gains. So, New Delhi was now "simulating some cases" to enhance the comfort level of Singapore players for making direct investments in India, Mr. Kamal Nath indicated.

Courtesy: The Hindu, April 09,2006

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US Administration to Ensure Strong Congress Support for N-deal
 

The United States has dismissed as "overplayed" reports that Indo-US civil nuclear deal was aimed at having India as a counterweight to China. It also said that it was intensively lobbying to answer all questions of Congress on this "major initiative" and ensure strong support for it. Reports talking of the Administration wanting to have a democratic India as a counterweight to China "might have been overplayed a bit," Acting State Department Spokesman Adam Ereli said on Monday. The pact was more than "blocking" or being "defensive" against other powers, he said. "It was really more: How can we move India in the right direction and bring India into... integrate India more fully into the international energy realm as opposed to sort of geo-strategic manoeuvring?" Speaking ahead of Secretary of State Condoleezza Rice's appearance on Wednesday before Senate Foreign Relations Committee and the House International Relations Committee, Ereli said, "I think this intensive lobbying, this intensive programme of briefing and consultations, reflects first and foremost a recognition that Congress has an important and necessary role to play in this initiative." He said Rice's testimony "is but the latest in ... A fairly intensive effort to work with the members of the Hill, respond to their questions, answer their concerns and explain why this is a good deal that's in America's interests." He said Under Secretary for Political Affairs Nicholas Burns, Under Secretary of State for Arms Control Richard Joseph, Assistant Secretary of State Stephen G Rademaker, Assistant Secretary of State for South Asia Richard Boucher and other experts from the White House have been building up consensus on the nuclear deal. They "have been beating a well-worn path to Capitol Hill over the last several months to explain this deal, to address concerns and, frankly, to build the level of consensus and understanding that we hope will see this bold and positive initiative through to fruition," Ereli remarked. The driving force behind the deal, he said, was "to bring a nuclear programme under international safeguards and to help India develop its energy sector in a way that was consistent with both non-proliferation concerns and contribute to international stability and international investment, and that's a good thing." It brings Indian civilian facilities under IAEA safeguards. And negotiations or talks with the IAEA is a part of this deal," he said referring to the UN nuclear watchdog International Atomic Energy Agency.

Courtesy: Hindustan Times, April 04, 2006

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India, France Hold Naval Exercises off Goa Coast
 

Adding a new chapter in bilateral ties, aircraft carriers, destroyers and submarines of India and France, supported by their air forces, on Sunday undertook week-long joint exercises off the Goa coast to tone up inter-operability and make them ready in the event of integrated operations. As two Sea Harriers, having the unique capability of vertical take-off and landing, landed on Charles de Gaulle after starting from Indian aircraft carrier INS Viraat a few kilometres away, the French ship became only the second foreign aircraft carrier after the US one on which the Indian fighters have landed. Another highlight of the eighth joint exercise is that for the first time, aircraft carriers of both the countries are participating for the first time.

Courtesy :Hindustan Times, April 03, 2006

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