PM Addresses the Nation on Recent Reforms

Indian Prime Minister, Dr Manmohan Singh, addressed the nation on September 21, 2012, to explain the need of the recently announced economic reforms. Soon after announcing a bold 12 per cent hike in diesel prices, the government introduced new FDI guidelines in sectors such as aviation, retail and broadcasting, a move that is expected to attract fresh investment into these sectors.

Prime Minister, Dr. Manmohan Singh addressed the nation on September 21, 2012. Following is the text of the Prime Minister’s address:

“My dear brothers and sisters,

I am speaking to you tonight to explain the reasons for some important economic policy decisions the government has recently taken. Some political parties have opposed them. You have a right to know the truth about why we have taken these decisions. No government likes to impose burdens on the common man. Our Government has been voted to office twice to protect the interests of the ‘aam admi.’

At the same time, it is the responsibility of the government to defend the national interest, and protect the long-term future of our people. This means that we must ensure that the economy grows rapidly, and that this generates enough productive jobs for the youth of our country.  Rapid growth is also necessary to raise the revenues we need to finance our programmes in education, health care, housing and rural employment. The challenge is that we have to do this at a time when the world economy is experiencing great difficulty. The United States and Europe are struggling to deal with an economic slowdown and financial crisis. Even China is slowing down. We too have been affected, though I believe we have been able to limit the effect of the global crisis.
Click here to read full address

Delhi to Host 'Days of Moscow' Festival in October

Russian Embassy in New Delhi

With Russian President Vladimir Putin due in the Indian capital, in the first week of November, both Delhi and Moscow have finalised the programme for a cultural festival and business forum from October 26 to 29

The programme was finalised last week, when a working group of the Russian Government, with the assistance of the Russian Embassy in India, visited New Delhi and held a number of meetings and talks with their Indian counterparts. The protocol on organising the ‘Days of Moscow’ was signed by V. V.  Lebedev, Deputy Head of the Department for External Economic and International Relations of Moscow, and Santosh Vaidya, Special Secretary to the Chief Minister of Delhi and Special Secretary (Art, Culture and Language) in the presence of P. K. Tripathi, Chief Secretary, Government of Delhi.

The festive programme will be held during President Putin’s visit to India between October 26 and 29, in the framework of the Programme of Co-operation for 2012-2015.

 The Russian delegation was received by Delhi Chief Minister Sheila Dikshit, who said she fully supported the idea of the festival and promised all possible assistance. Festivities will start on October 26 with the inaugural ceremony and a concert staged by the ‘Gzhel’ Moscow State Academic Dance Theatre and other creative and musical ensembles from the Russian capital. The concert is likely to be staged in the open-air theatre of the Central Park at Connaught Place.

Delhi will also host the Russian-Indian Business Forum, where prominent Russian and Indian businessmen and experts will discuss urban maintenance, including vital issues such as urban infrastructure and construction, automation of transport systems, modernisation of healthcare, waste recovery and environmental protection, water supply and purification, energy-saving technologies, protection and conservation of historical monuments and e-government.
 
Also as part of ‘Days of Moscow,’ a multidimensional art exhibition will be inaugurated at the Lalit Kala Academy; this will include an exhibition of Moscow artists titled ‘Seasons of the Year.’ The exhibition will feature workshops by Russian artists and craftsmen of decorative and applied arts. Plans are also on for concerts with vocal and instrumental ensembles.

The Lalit Kala Academy will also host a book fair from leading Moscow publishing houses, a photo exhibition of modern Moscow and a presentation of razor-edge computer programmes and technologies. After the exhibition, the books will be presented to the major libraries and educational institutions of the Indian capital. The exhibition will stay open till November 5. The chess academy of the Russian Centre for Science and Culture, in Delhi, will host a chess tournament for Russian and Indian school children. One of the city art galleries will house an art exhibition from the collections of the Pushkin State Museum. Russian has also suggested a fashion show showcasing Russian designer Valentin Yudashkin.

Russian LNG-powered Trains Headed to India

Indian Railways is set to float a tender for the supply of gas-turbine electric locomotives and the Russian consortium has virtually no competition. Russian gas turbine-electric locomotives (GTEL - driven not by gas, but by the power produced by the generator, which is connected to a gas turbine), using liquefied natural gas, will be heading to India in the not-too-distant future. Indian Railways is set to announce an international tender in November for the supply of GTEL, unique machines that offer a viable alternative for trains running on clean fuel. A consortium of Russian Railways Concern (RZD) and associated companies such as the United Industrial Corporation OBORONPROM will be bidding for it and will have practically no competitors.

Russia has the first mover advantage in this high-tech area, but it has no experience of its mass production. India and Russia may, therefore, become pioneers in the commercial development of LNG-powered locomotives.

The experiments to create a railway locomotive with a gas turbine instead of a diesel-powered engine goes back to the middle of the last century. But due to their noise, high fuel consumption and structural complexity, GTELs didn’t quite take off. Meanwhile, Russia’s Samara Scientific and Technical Complex specialised in the construction of gas-turbine engines for strategic bombers and gas-pumping units. Read more

NMDC in Talks with Two Firms to Buy Assets in Mozambique, Russia

State-owned iron-ore miner NMDC is in talks with two coking coal firms, once each from Mozambique and Russia, for acquiring stakes in them. Of this, Sol Mineracao Mozambique -- the Mozambique firm -- has coking and thermal coal assets, having an exploration target of about 500 million tonne, in Mutarara district of Tete province, NMDC said in its annual report for 2011-12.

"The exploration activity is complete in the precise area and is due for the grant of mining license," NMDC's acting Chairman C. S. Verma said in the annual report. About the Russian firm, he said that it is in Kuzbass basin in Kemerovo region of Russia, and has 50 million tonne of recoverable coking coal reserves. He did not disclose its name but mentioned, "NMDC is presently in discussion for acquisition of strategic stake with a coking coal company located in Kuzbass basin in Kemerovo region, one of the largest coal mining areas in the world.” The Russian firm's reserves have an upside potential of additional 100 million tonne, he added.

NMDC officials declined to comment on the two potential deals and how much the company plans to acquire them at. The Hyderabad-based company has been scouting for coking coal assets in the US and rock phosphate projects in Africa, as part of its efforts to increase its global footprint and diversify its portfolio from being an iron-ore miner to a natural resources giant. The company, which had cash reserves of Rs 20,265 crore in the last fiscal, has kept a budget of Rs 1,200 crore for acquiring properties abroad. In 2011, the Indian iron-ore miner had made its first overseas acquisition by acquiring Australia's Legacy Iron Ore.

Besides this, it has signed a memorandum of understanding with Brazil's Amplus Mineracao LTDA, few months back, to invest in the exploration of the Brazilian firm's iron-ore mines and providing NMDC's technical expertise. In return, NMDC will get 26 per cent stake in Amplus and this can be increased to 50 per cent at a later stage. As per the Indian miner's estimates, Amplus has iron-ore reserves of about 1 to 1.5 billion tonne.