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Moily calls for setting up JVs in Kazakhstan

Source : IBNS
Last Updated: Wed, Jan 09, 2013 14:01 hrs
Moily calls for setting up JVs in Kazakhstan

New Delhi, Jan 9 (IBNS) Union Minister of Petroleum & Natural Gas M. Verrappa Moily on Wednesday called for setting up Joint Venture (JV) projects in Kazakhstan for manufacturing finished products from their minerals and raw material which could be exported to India.

He was addressing the 10th meeting of India Kazakhstan Inter-Governmental Commission (IGC) on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation here on Wednesday.

"Due to high transportation costs, it is not economical to import raw materials and unprocessed products from Kazakhstan. Hence, efforts should be made to set up joint ventures in Kazakhstan based on these raw materials to manufacture value-added goods which could be exported to India - particularly items like copper, titanium, magnesium, phosphates, potash, molybdenum, tantalum and other rare earths," said Moily.



The Minister also expressed hope that OVL's proposal to buy ConocoPhillips stake of 8.4% in the Kashagan oil field would be favourably considered by consortium partners and the Government of Kazakhstan.

Recently, OVL and ConocoPhilipshave signed an agreement for purchase of the share of ConocoPhillips in Kashagan oil field.

Moily further said: "Indian Oil & Gas companies have started exploring the possibilities of establishing direct transportation of hydrocarbons from Kazakhstan to India, which, if implemented would be considered a turning point in the region.

"Incidentally all the countries involved in this venture Kazakhstan, Uzbekistan, Afghanistan, Pakistan and India are members of CICA, an idea conceived by the great leader of Kazakhstan President Nazarbayev, who through his tireless efforts gave birth to this organization in the very early days after independence."

Moily led the delegation from India. The Kazakh side at the IGC meeting was led by Bulat Akchulakov, Vice Minister of Oil and Gas, Republic of Kazakhstan.

The two Ministers signed IGC Protocol here on Wednesday after conclusion of the India-Kazakhstan IGC meeting.

P. Lakshmi, MoS (P&NG) and senior officers from both sides were also present.

Following is the full text of speech of Dr. M. Veerappa Moily, Minister of Petroleum and Natural Gas :

"I have the honor and pleasure of hosting your Excellency and your delegation on your visit to India, to co-chair the 10th Meeting of the India-Kazakhstan Inter-Governmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation. We are happy on the developments which have taken place after the 9th Meeting of the IGC held in Astana on 11-12 October 2011.

The relations between India and Kazakhstan are ancient and civilizational. In more recent times, India has been known to the people of Kazakhstan through Hindi films, Yoga, Indian tea, music and culture. Our relations have always been warm, friendly and multi-faceted.

Excellency,We wish to congratulate you on Astana`s winning bid to host the EXPO-2017. We thank you for Kazakhstan`s support for India`s candidature in ICJ, UPU and our positions in various other international fora.

India is a huge market of 1.2 billion people, and its economy is growing at more than 8% per year. For its developmental needs, India requires most of the minerals and raw materials produced by Kazakhstan. Due to high transportation costs, it is not economical to import raw materials and unprocessed products from Kazakhstan. Hence, efforts should be made to set up joint ventures in Kazakhstan based on these raw materials to manufacture value-added goods which could be exported to India - particularly items like copper, titanium, magnesium, phosphates, potash, molybdenum, tantalum and other rare earths. If Kazakh side agrees, a delegation of Indian companies could be sent to Kazakhstan to discuss the possibility of setting up joint ventures in the area of such metals and minerals.

Excellency, India considers Kazakhstan as one of the most important countries in this region, and India's key partner in Central Asia. The signing of the package of documents relating to the Satpayev Exploration Block between the National Oil Company of Kazakhstan, KazMunaiGas and ONGC Videsh Limited on 16th April 2011 was a landmark development in our bilateral relationship.

Recently, OVL and ConocoPhilipshave signed an agreement for purchase of the share of ConocoPhillips in Kashagan oil field. We hope that OVL's proposal to buy ConocoPhillips stake of 8.4% in the Kashagan oil field would be favourably considered by consortium partners and the Government of Kazakhstan.

Our Oil & Gas companies have started exploring the possibilities of establishing direct transportation of hydrocarbons from Kazakhstan to India, which, if implemented would be considered a turning point in the region. Incidentally all the countries involved in this venture Kazakhstan, Uzbekistan, Afghanistan, Pakistan and India are members of CICA, an idea conceived by the great leader of Kazakhstan President Nazarbayev, who through his tireless efforts gave birth to this organization in the very early days after independence.

India needs huge quantities of fertilisers for its agriculture and food security. Several Indian companies (both in public and private sector) are trying to set up joint ventures for manufacture of fertilisers in Kazakhstan. They are exploring projects to manufacture gas-based fertilisers like urea, potash-based fertilisers and phosphate fertilisers. We request the Kazakh side to facilitate feasibility studies likely to be conducted by such companies.

Excellency, India has long experience in small and medium sector enterprises and most of Indian exports are from this sector. India has a separate Ministry for SME sector and was willing to share its experience and expertise with Kazakhstan. Entrepreneurs from Kazakhstan were being sent to India under the ITEC Programme for training in the institutes specialising in the development of small and medium enterprises.

Weemphasize the need for better transportation connectivity between the two countries. Whether it is trade or joint ventures, commercially viable connectivity is of utmost importance. In this connection, most of the trade is taking place through European and Chinese ports at present because of the problems associated with transportation via Iranian ports. There are problems not only because of the sanctions by Western countries but also because of delays and excessive checking at the customs checkpoints on several borders during transit. The transportation route via China is also not convenient because of congestion at Chinese ports. We request for early convening of the JWG on Transportation.

Excellency, as a follow-up of the Agreement between the two countries in the field of healthcare, some medical institutions have visited Kazakhstan for exchange of experts and joint research. Efforts are being made to encourage Indian pharmaceutical companies to set up joint ventures in Kazakhstan. The proposed Agreement between the two countries in the field of pharmaceuticals was still pending. We hope that this will be signed as soon as possible.

Our cooperation in the area of Defenseis progressing well which includes training of Kazakh officers in India and military-technical cooperation. India is buying some spare parts from Kazakh companies and is getting its Torpedoes upgraded in Kazakhstan. The Joint Working Group meeting was held on 26th November, 2012 and several new areas of cooperation were identified which includes India`s assistance in the development of Kazakh Navy in the Caspian Sea, cooperation in the manufacture of arms and ammunition, upgradation of Indian Torpedoes in India itself and joint military exercises. Several new projects related to defense surveillance equipment are under consideration. Most of the equipment being used by Indian armed forces was of Soviet origin and both sides could explore the possibility of setting up joint ventures in the field of defense production and equipment up-gradation.

Excellency, the mechanism of the India-Kazakhstan IGC is a vehicle for achieving our common desire to enhance bilateral cooperation for our mutual benefit. It is a matter of great satisfaction that between the 9th meeting of the IGC held in Astana in September 2011 and today, significant developments have taken place.

May I wish you, and through you the Government of Kazakhstan, and the friendly people of Kazakhstan, prosperity and happiness."

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