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  01 MAIN
   
   
  02 NEWSMAKERS
   
   
  03 INVESTMENT UPDATE
   
   
  04 INDIA ABROAD
   
   
  05 SCIENCE & INFOTECH
   
   
 

06 CULTURE

   
   
  07 TRAVEL
   
   
  08 CALENDAR
   

   
  HIGHLIGHTS
   
 

'IT exports to touch US$ 80 billion in three years'
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  The Legend of Indian Carpets
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  Scenic Sikkim & Darjeeling
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02 NEWS MAKERS
 
Eighth India, Russia, China Foreign Ministers meeting held in Russia
14-15 May 2008, Yekaterinburg, Russia

The Eighth Meeting of the Foreign Ministers of the Russian Federation, the People's Republic of China and the Republic of India was held on May 14-15, 2008 in Yekaterinburg, Russia. Joint Communiqué on the outcome of the Meeting of the Foreign Ministers of the Russian Federation, the People's Republic of China and the Republic of India was issued here are the highlights:

The Eighth Meeting of the Foreign Ministers of the Russian Federation, the People's Republic of China and the Republic of India was held on May 14-15, 2008 in Yekaterinburg, Russia. The Ministers noted with satisfaction the increasing interaction between Russia, China and India, fast growing, multi ethnic countries with rich history and culture. It was underlined that trilateral interaction was contributing to the shaping of a multi polar, stable and harmonious world, to democratization of international relations and a more just and rational international order. The Ministers positively assessed the efforts made by the three Parties to build up the potential of cooperation in accordance with the outcome of the Harbin Meeting on October 24, 2007.

The first round of consultations between the Heads of Departments of the Russian, Chinese and Indian Foreign Ministries held in February 2008 in Moscow was highly appreciated. It signals the beginning of regular exchange of views at this level on implementation of understandings reached during the Russia-China-India Foreign Ministers’ meetings and preparation for their future meetings. Russia – China – India forum on agricultural cooperation on April 28, 2008 in Beijing is an important step towards promotion of trilateral interaction in this sphere. Substantial work to establish cooperation between experts of the three countries on health & medicine and disaster mitigation & relief has also been started. It was agreed that the first trilateral meetings on these subjects would be
held in 2008.

The Ministers highlighted the importance of enhancing contacts between the business communities of Russia, China and India and in this regard commended the outcome of the first trilateral business forum held in New Delhi in December 2007. A meeting of the Chambers of Commerce and Industry of Russia and India and the China Council for the Promotion of International Trade will be held in Moscow in the autumn of 2008.

The Ministers appreciated the holding of the trilateral Seminar on Evolution of Geo-Political Strategic Trends in New Delhi in March this year with the participation of officials and experts from Russia, China and India which further encouraged the multifaceted dialogue between the official circles and academic communities of the three countries.The Ministers reiterated their intention to actively deepen dialogue and interaction between the three countries. Special attention was paid to the wide-ranging possibilities of cooperation in the humanitarian field.

In this context, Russia, China and India stated that they attach great importance to international cooperation in promoting and protecting human rights and basic freedoms. Bearing in mind that drawing lines on the ground of ideologies and values or on geographical criteria is not conducive to peaceful and harmonious coexistence, the Ministers believe that such cooperation should take due account of specific characteristics of cultural and historical development of each of the countries and respect for traditional values of civilizations. The Ministers emphasized that international humanitarian assistance should focus on disaster relief, reconstruction etc and refrain from interference in internal affairs.

The Ministers discussed in detail the global situation and the major international and regional problems and reaffirmed the commonality in the approaches of the three countries. The Ministers reiterated that today's world order should be based on the rule of international law and the strengthening of multilateralism with the United Nations playing the central role. They reaffirmed the need for a comprehensive reform of the UN with a view to make it more efficient so that it can deal with the current global challenges more effectively. The Ministers of Russia and China reiterated that their countries attach importance to the status of India in international affairs, and understand and support India’s aspirations to play a greater role in the United Nations.

The Ministers confirmed their countries’ commitments made under the UN Framework Convention on Climate Change and the Kyoto Protocol and underlined the need to develop greater interaction in international cooperation to combat global climate change. They declared the intention of the three nations to take all necessary efforts to implement the Bali Plan of Action.

 The Ministers agreed that elaboration of a common position in the field of counteracting new challenges and threats within the framework of the United Nations is of particular importance. They expressed their confidence that their anti-terrorism cooperation should be actively supported both within the framework of the UN system and regional organizations. They also called upon all member states to comply with relevant international terrorism conventions and related protocols, and the Security Council resolutions on counter-terrorism. While supporting the implementation of the UN Global Counter-Terrorism Strategy the Ministers emphasized that all member states should make concerted efforts towards expeditious finalization of a Comprehensive Convention on International Terrorism at the UN. They reaffirmed their commitment to further strengthening cooperation among their countries to combat terrorism.

Reviewing the situation in the Asia-Pacific Region (APR), the Ministers stated that it is defined by the aspiration of the region towards peace and sustainable economic development. Guided by the principles of multilateralism and equal security they stressed the necessity of a regional security system based on mutual confidence, mutual taking into account the interests of the other sides, equality and cooperation. They expressed themselves in favor of expanding the economic integration in the APR on a mutually beneficial and non-discriminatory basis in accordance with the principles of open regionalism.

The Ministers reaffirmed their countries’ common desire to expand multifaceted cooperation with the Central Asian countries, including in the fields of combating terrorism, separatism, extremism, illegal drug trafficking and transboundary crime. The Ministers spoke in favor of identifying various forms of trilateral interaction in order to promote further development of the region. The Ministers of Russia and China welcome India’s aspirations for playing an enhanced role as an Observer State within the SCO framework.The Ministers praised the achievements of Afghanistan on the way for its reconstruction, but at the same time expressed concern at the continuing deterioration of the security situation there due to continued terrorist attacks and resurgence of the Taliban and Al Qaeda. They stressed the importance of rendering assistance to the Afghan government in fulfilling its tasks in the field of security, in improving the functioning of governmental institutions and social and economic development of the country.

They highlighted the need for strict observance of the sanctions regime against Afghan extremist leaders and other persons and entities listed by UN Security Council Committee 1267, tough rebuff to the forces of terrorism and extremism in Afghan territory as also for further increasing the efforts to eradicate the drug threat coming from Afghanistan. The Sides noted the importance of international and regional cooperation in creating a comprehensive system of anti-drug security belts alongside the borders of Afghanistan with the UN playing a central coordinating role and cooperation of the neighboring countries.

The Ministers noted the need to continue the efforts to achieve at the earliest a political and diplomatic settlement of the situation around the Iranian nuclear program through negotiations. The purpose of these negotiations is to find a long-term comprehensive solution that provides for the trust of the international community to be restored in the exclusively peaceful nature of the program to ensure that Iran can exercise its right to the peaceful use of atomic energy and to open up the path to wider international cooperation with Iran. The Ministers call upon all interested parties to continue active efforts to promote the six-party talks on resolving the Korean Peninsula nuclear problem towards peaceful and full denuclearization of the Peninsula in accordance with all relevant agreements achieved earlier in Beijing.

The Ministers noted the importance of settling the issue of the status of Kosovo in accordance with norms of international law with the UN playing the leading role and on the basis of an agreement between the parties. The unilateral declaration of independence of Kosovo is contrary to the UN Security Council Resolution 1244, which should remain the legal basis for the settlement of Kosovo issue till new decisions by the UN. The Ministers call upon Belgrade and Pristina to act within the framework of international law in order to search for an appropriate solution to the problem through negotiations. The Russian and Indian Ministers reaffirmed their countries’ support to the Beijing Olympic Games and efforts to ensure their successful holding. The Ministers expressed satisfaction with the outcome of the meeting and decided to hold the next trilateral meeting in India.

Rent-A-Port eyes India for port, logistics projects

If development of ports and port-based infrastructure like special economic zones are a craze with Indian corporate, it has also started attracting specialized agencies with innovative solutions to assist port and other logistics developers. Antwerp-based Rent-A-Port, a specialized company for port development and logistics, is one of the first such companies that have started logging into Indian port scene with innovative plans and programmes.

"We are half way into a project in India, where we are busy with planning and development of new port infrastructure including breakwaters, berths, dredging, reclamation etc, in which we have considerable experience, said Neerav Kumar Gupta, who is in-charge of the company operation in the south east Asian region. Confidentiality clauses, said Mr Gupta, prevented him from giving any more details about the project.

Continued on Page 03

Government plans to raise FDI cap for CCEA nod

Foreign direct investments into India are set for a more liberal regime whereby companies will require only an FIPB approval for investments up to Rs 1,000 crore. Clearance from Cabinet Committee of Economic Affairs (CCEA) will be mandatory only for investments above Rs 1,000 crore. At present, any investment proposal above Rs 600 crore requires an approval from the CCEA over and above the FIPB nod.

The FIPB clears FDI proposals below Rs 600 crore and the finance minister approves it. The relaxation in rules will also help existing foreign companies who can now pump in additional investments in their Indian operations or outfits without seeking a government approval as long as it is within the Rs 1,000 crore limit. Once the new rules kick in, companies such as beverages giant Coca Cola need not go to CCEA for every investment they want to make. Press Note 7 of 1999 had made it mandatory for any foreign company that was to invest more than Rs 600 crore to go to the then Cabinet Committee on Foreign Investment. Subsequently, the responsibility was transferred to the CCEA.

The finance ministry has written to the Department of Industrial Policy and Promotion about reviewing the Press Note. The proposal is likely to be take up when the DIPP carries out the next FDI policy review, sources told ET. The DIPP is still working on the norms related to indirect foreign holding in sectors where there are FDI caps. Sources said the limit that was set when the country was just opening its doors to foreign investment now needed to be increased. Moreover, the fact that these investment proposals have to be vetted by the CCEA not only makes the process longer, but also burdens the agenda of the committee that has to ponder on larger economic policy issues. They said the FIPB approval requirement for companies which come in after the CCEA clearance also was unnecessary, as in some cases the amounts are as low as Rs 50 crore.In 2007-08, the country received FDI of $24.5 billion as against $15.58 billion in 2006-07, showing a growth of about 56%. In 2005-06, the growth was even sharper at 184%, up from $5.5 billion in 2004-05.

Source:The Economic Times

3i Infotech to acquire US-based company

Global information technology company 3i Infotech on Tuesday said it will acquire US-based Regulus group LLC (Regulus), an independent remittance and document processing services provider, for up to $100 million. The cost of the acquisition is approximately $80 million with additional consideration of up to $20 million based on an earn-out linked to certain performance parameters, 3i Infotech said in a filing to the Bombay Stock Exchange.

"The acquisition of Regutits Group is a strategic one and will enable 3i Infotech to strengthen its positioning in the payment processing industry," 3i Infotech managing director and CEO V Srinivasan said. The company has signed an agreement with Regulus group under which it would acquire 100% stake the company, including its products, trademarks and brands.

California-based Regulus handles over 2.1 billion paper and electronic transactions annually. It operates through 10 processing centers in California, Georgia, Illinois, New Jersey, North Carolina, Iowa and Texas. Regulus has around 1,300 employees and serves around 150 clients through its direct sales force and about 85 additional clients generated through reseller partnerships.

Pursuant to the acquisition, current Regulus CEO Richard Long would step down and Kathleen Hamburger, current president and chief operating officer of the firm, would assume the role of CEO. Shares of 3i Infotech were trading at Rs 123, up 2.71% on BSE in morning trade.

Source:The Times of India