India Signs Energy Co-operation
Pacts with Azerbaijan, Uzbekistan

CIS Oil & Gas
Boon for India

India's initiative in exploring opportunities in the oil and gas sector of the CIS region found an expression during a recent visit of Minister of State for Commerce Jairam Ramesh to Azerbaijan and Uzbekistan. During his week-long visit to the two countries he signed a number of multi-sectoral agreements to boost bilateral economic relationships covering both investment and trade, with an emphasis on the oil and gas sector.

Ramesh held talks with Uzebekistan Prime Minister Savkit Mirziyayev following which the central Asian country has agreed to open technical talks with GAIL for enabling the Indian company to start exploration activity in natural gas in the gas-rich nation.
India, in its turn, has offered to help establish a training institute for gas technology in Tashkent, on the lines of the Jawaharlal Nehru IT Centre in the Uzbek capital that was inaugurated by Prime Minister Manmohan Singh last year. GAIL has identified four specific blocks for gas exploration. So far Russia, China and South Korea have invested in gas exploration in Uzbekistan.

Indian companies are also set to play a greater role in the development of Azerbaijan's rapidly expanding oil and gas industry following an agreement between India and Azerbaijan on cooperation in several areas including oil and gas sector.
This was the result of a meeting that the visiting Indian Minister had with Azerbaijan President Ilham Aliyev in Baku. During the meeting, Aliyev agreed to ONGC Videsh and SOCAR, the state-owned oil and gas exploration company of Azerbaijan starting talks for cooperation for ONGC Videsh's investments in hydrocarbon-rich Azerbaijan.

ONGC Videsh has already invested close to $5 billion in 15 countries around the world, half of which is in Russia alone and that ONGC Videsh has much to offer to Azerbaijan, particularly in fields where production is declining. Aliyev sought India's assistance in enhanced oil recovery and deep sea drilling.
Ramesh offered GAIL's expertise in gas-based petrochemicals and city-gas distribution. To begin with, ONGC Videsh and GAIL was to participate in the Caspian Sea Oil and Gas Exhibition being held in Baku in June.
In Baku, Ramesh signed the first-ever agreement with Azerbaijan for establishing the India-Azerbaijan Intergovernmental Commission on Trade, Economic, Scientific and Technological Cooperation. Accompanied by the Managing Director of ONGC Videsh, the Minister pursued India's interests for oil and gas exploration in Azerbaijan.

Since Azerbaijan also has vast resources of minerals and metals, senior officials from MMTC and the National Mineral Development Corporation(NMDC) accompanied Ramesh, to explore the possibilities of entering into a Memorandum of Understanding for cooperation in the mineral sector with the Azerbaijan Government.
BHEL has executed a major project for supply and installation of power generators. Indian pharmaceutical companies are also building their presence in Azerbaijan. The Minister's visit provided the right fillip to these efforts.
Ramesh also offered India's assistance in tapping the high wind energy potential in Azerbaijan. The Minister informed the Azerbaijan President that Indian companies like Vestas and Suzlon have become globally prominent and already about 4500 MW of wind energy capacity has been established in India.

During his talks with government leaders in both Azerbaijan and Uzbekistan, Ramesh expressed India's keenness in exploring cooperation in other areas, notably, gold mining.
In Uzbekistan, Ramesh conveyed to the Prime Minister, India's interest in exploring gold in gold-rich Uzbekistan since India is now the world's largest importer of gold. The Uzbek government has agreed to consider a proposal from MMTC/ National Mineral Development Corporation (NMDC) for gold exploration but wants this proposal to include value-addition investments in Uzebekistan itself, like in gold jewellery. MMTC and NMDC were to formulate a proposal for submission to the Uzbek government in the following 30 days.
The Uzbek Prime Minister also scored the special cultural and political relationship that exists between India and Uzbekistan and said that the time was now ripe for taking the bilateral economic relationship to a new high.

In Azerbaijan, Ramesh briefed Aliyev about India's interest in exploring for gold in that country since India is now the world's largest importer of gold. MMTC and NMDC will work with their Azerbaijani counterparts to identify specific areas where prospecting and appraisal work can be undertaken.
Aliyev expressed deep appreciation of India's offer to help establish a centre for education and training in IT in Baku. The President agreed with the observations made by Ramesh that India's great strength lies in skills training and human resource development, particularly in management, law and science and technology. Of the 100 Azeri students who are to be sent abroad for higher education this year, it is expected that 20 will come to India.
Azerbaijan President and other leaders also expressed hope that Indian pharmaceutical companies would consider moving beyond distribution and set up manufacturing facilities in Azerbaijan.
Ramesh and Azerbaijan's Minister for Economic Development Haiyder Babayev also signed an agreement that sets up a Joint Intergovernmental Commission on Trade, Investment and Economic Cooperation.

The Agreement, which has been on the anvil for almost five years, is expected to provide a fillip to both commercial and cultural exchanges between the two countries. India has also offered technical assistance to Azerbaijan to facilitate its entry into the WTO. Meanwhile, President Aliyev accepted the invitation from Ramesh to visit India at the earliest.
Also accompanying the Indian Minister was Mukund Chaudhury, Managing Director of CLC Textiles, which has recently invested $ 81 million in cotton spinning and yarn in Uzbekistan. A further investment of $ 40 million is planned by CLC Textiles over the next two years. The Uzebk Prime Minister appreciated the operations of CLC Textiles and expressed Uzbekistan's keenness for similar investments by Indian companies in pharmaceuticals and leather. Ramesh promised to talk to Indian companies in this regard soon.