India, Russia to work towards CEPA
The Hindu | 14 February 2007
India, Russia to work towards CEPA
Special Correspondent
NEW DELHI: Russia has decided to settle the rupee-rouble debt issue by agreeing to finance investments in India. The projects in which this outstanding debt, estimated at $1 billion, would be channelised are to be identified later. Both sides had earlier decided in-principle to invest the money in India but differed over the projects that could be funded.
"Both sides have agreed to the broad principle of using the debt that India owes to Russia. The funds would now be invested as Russian equity in projects in India that would be set up in partnership between the entities of both countries,’’ Commerce and Industry Minister Kamal Nath told newspersons after a meeting between his Russian counterpart, German Gref, and Union Finance Minister P. Chidambaram earlier in the day.
To give a boost to economic ties, both countries have agreed to work towards a Comprehensive Economic Partnership Agreement (CEPA) with a joint study group having been set up to examine the issue involved.
"During the two-day meeting of the forum, both sides also agreed a protocol to boost bilateral trade and investment and identified sectors for boosting trade.
The Russian Minister said the bureaucracy was responsible for the "inertia that has slowed down the development of trade relations with India.’’
