NEW DELHI, Oct 19: Civil nuclear liability issues posing hurdles in clinching a deal with Russia on acquiring two new reactors for Kudankulam project and sticky points over an agreement with China to avoid army face offs on the border await resolution as Prime Minister Manmohan Singh embarks on a five-day visit to the two countries tomorrow.
Hopeful of reaching according on both the issues, officials are said to be working over time to negotiate a mutually acceptable solution so that the deals can be signed during the visit to Moscow and Beijing.
Singh, who will be paying an official visit to Moscow, will be participating in the 14th annual summit with Russian President Vladmir Putin on Monday, his fifth in Moscow.
Official sources said in a bid to assuage Russian concerns on the civil liability clause in the nuclear law in India New Delhi has made proposals outlining the parameters for taking insurance on the possible damage that could arise in case of an accident.
They include the quantum of liability on suppliers of equipment both foreign and Indian, which has been made clear that it is not unlimited.
Russia has been opposed to application of the nuclear liability law on the reactors for the proposed III and IV units in Kudankulam power project since the original scheme was conceived under an inter-government accord.
Public sector General Insurance Corporation (GIC) has been tasked to work with the Department of Atomic Energy (DAE) to work on quantifying the damage and the liability on suppliers of equipment, including the reactors.
Sources are confident that the accord on Unit III and IV will be clinched during Singh’s visit to Moscow.
The visit to Russia also signifies the deep strategic partnership between the two countries over the years in defence, science and technology and space.
India is also interested in expanding cooperation in the hydro carbons with ONGC’s overseas arm OVL seeking new opportunities in exploration of gas and oil in Russia’s far east and Arctic zonel.
OVL is already participating in two projects as 20 percent partner in the Sakhalin one project and as 100 per cent owner and operator of Imperial Energy in Tomsk Region.
After talks and a working lunch with Putin on Oct 21, the Prime Minister will be conferred with an Honorary Doctorate by the Moscow State Institute of International Relations (MGIMO).
A customary joint statement will be issued at the end of the visit during which a few agreements will be signed in areas like science and technology, energy efficiency and standards. Also on the margins of the Summit, there will be a meeting of the newly-constitute CEOs Council.
Last year, there was a 24 per cent rise in bilateral trade crossing USD 11 billion in 2012 for the first time. Investment is emerging as an important focus of bilateral trade.
From Moscow, the Prime Minister flies to Beijing on Oct 22 for a meeting with his counterpart Li Keqiang on Oct 23, his second in six months. He will be hosted a luncheon banquet.
Sin will also be meeting President Xi Jinpeng, who will host a dinner banquet, a rare honour for an Indian leader after such a courtesy was extended to Jawaharlal Nehru in the fifties.
The focus of the visit to China will be the proposed landmark Border Defence Cooperation Agreement (BDCA) to avoid face offs between the two armies along the disputed Line of Actual Control, which officials are hopeful of clinching next week.
The BDCA, which provides for ‘no tailing’ of each other and ‘no shooting’ by troops of both sides, is expected to boost steps to maintain peace, tranquility and status quo on the border with China.
Coming against the backdrop of the longest face off in Depsang valley in Ladakh this summer, where PLA troops stayed put for over 20 days, it will be a step forward over the 2005 accord that set out standard operating procedures and be part of the confidence building mechanism between the two countries.
“Maintenance of peace, tranquility and stability of our border is an important factor in our bilateral ties and it is expected that this would be an important aspect of the discussions as it is also the basis on which the rest of our bilateral relationship can proceed and grow,” Foreign Secretary Sujata Singh told the media yesterday in her pre-visit briefing.
An agreement to put in place a liberalised visa regime during the visit has been deferred after the recent bitter episode of China issuing stapled visas to two archers from Arunachal Pradesh.
Earlier, there were indications of the visa regime being relaxed with China urging India to ease rules for issuing visas to industrialists and professionals wanting to come here and India also seeking reciprocity.
During the visit, India will convey its serious concerns over the stapled visa issue as also the growing nuclear cooperation between China and Pakistan.
Seeking to expand bilateral economic ties, the two countries have set a target of USD 100 billion by 2015. But India suffers from a huge trade imbalance against China.
The possibility of Chinese investment in through opening industrial park is being examined. Currently, a delegation from Chinese government is India to discuss the issue. States like Uttar Pradesh, Gujarat, Tamil Nadu, Karnataka and Andhra Pradesh have evinced interest in this.
On the sidelines of the visit, the second meeting of the India-China CEOs Forum will be taking place and both the Prime Ministers are expected to receive their recommendations to expand economic linkages.
Like in Moscow, at the culmination of the visit to Beijing a joint statement will be issued. Signing of agreements is likely in some areas on which officials were working, the foreign secretary said. (PTI)
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