1. Introduction
2. Problem areas in Indo-Russia
   1. Why is Russia Unhappy?
   2. Why is India unhappy?
3. Putin’s Wishes in Delhi visit?
4. Business n Trade
5. Energy: Nuke
   1. Kudankulam Nuke plant
   2. Kudankulam Nuke plant: Problems
   3. Kudankulam: Progress
   4. Kudankulam: Civil Nuke Liability
6. Energy: Oil and Gas
7. Defense: Indo-Russia
8. Science Tech: Indo-Russia
   1. What is GLONASS?
   2. Why India wants GLONASS Access?
   3. SnT #2: Joint research centres
9. On Afghanistan
10. No Joint Press Conference=Problem?
11. Mock questions

Introduction

• 13^th India – Russia Annual Summit was held @New Delhi and attended by Russian President Vladimir Putin. (Dec 2012)
• Important because this year marks the 65^th anniversary of Indo-Russia Diplomatic relations.

Problem areas in Indo-Russia

Why is Russia Unhappy?

1. Russia used to be key defense supplier to India, but recently India has diversified its suppliers (from Europe, Israel etc).
2. Lost bid of France’s Dassault Rafale.
3. 2G scam: Indian Supreme Court canceled license of Siestema company. Russian Government owns ~17% stakes in Siestema.

Why is India unhappy?

1. Russia trying to improve relation with PAK. (already discussed how Russian Defense minister did not come to India but visited Pakistan. click me)
2. Delayed delivery of Admiral Gorshkov (Vikramaditya) Aircraft carrier + Russia demanding more cash for it.
3. Few years back, ONGC Videsh bought a Russian Company Imperial energy. We want Russian Government to decrease the export duty on this company.

Putin’s Wishes in Delhi visit?

1. USA has gained heavy clout in Libya=> From now on, most of defense and nuke energy contracts of Libya will be awared to American Companies. So Putin wants more deals with India to make up for the business-loss.
2. India’s support (or atleast non-pro-USA stand) on Syria.
3. Putin is blackmailing Mohan that if you want tax-holiday for OVL (ONGC Videsh) in Russia, then you must restore 2G licenses of Siestema.Mohan says I’m helpless it is court-matter. (for more on 2G scam, click me)

Business n Trade

Bilateral trade between	Worth billion USD
Indo-China	More than 50
Indo-Russia	~10

Putin-Mohan agreed to take steps to increase the bilateral trade to 20 billion US Dollars by 2015.

Untapped sectors in Indo-Russia Business

Progress during Putin’s Visit:

Pharmaceuticals Fertilizers Mining Steel Information technology Civil aviation Telecommunications (problem= siestema license canceled in 2g) Infrastructure Food processing Innovation and services

We’ve asked inter-governmental and business level groups to recommend specific steps for increasing bilateral trade and investment flows in these untapped sectors. SBI  India + Russian Direct Investment Fund (RDIF)= 2bn dollar joint investment. TCS (India) signed deals with Russian firm Navigation Information Systems (NIS) for software Development etc. Elder Pharma (India) signed deal with Russian co.

Energy: Nuke

2010	Putin had signed “Roadmap for cooperation in the nuclear energy sector” with Mohan
2012	Agreements updated.

• Russia will build 1 nuke plant in India, every year for next 18 years.
• Cost of Each plant=2.5 billion USD.
• Capacity of Each plant = 1000 MW.
• Thus, By 2030 approx 20% of India’s electricity output come from Russian plants.

Kudankulam Nuke plant

• In Tiruneveli district of TN
• Developed by Nuclear Power Corporation of India Limited (NPCIL) + Russia Collaboration.
• Capacity 1000 MW x 2 plants
• For other plants of India, observe this map: click ME

Kudankulam: Problems

Centre vs State	People vs Government
Jayalalitha says when power plants are constructed in Andhra, they get to use the entire electricity. Same rule should be applied for powerplants constructed in Tamilnadu. But from Kudankulam, about 250MW electricity will be given to Kerala, despite the fact that Tamilnadu itself needs 2000MW.	Public protest against Kudankulam plant in the wake of Fukushima disaster. Mohan says Jholachhap NGOs financed by American companies, are playing mischief. Otherwise Kudankulam is way better and safer than Fukushima.

Kudankulam: Progress

Unit 1	Construction Complete.Power generation will start soon.
Unit 2	Will be finished next year.
3 and 4	In progress.Putin wants them to be out of Civil Nuke Liability law or India should pay higher price.

Kudankulam: Civil Nuke Liability

Late 80s	Agreement between India-Russia for construction of Kudankulam plant Unit #1 and #2.
2010	Indian Parliament passed Civil Liability for Nuclear Damage Act. It allows the nuclear operator the right to demand compensation from a supplier in case faulty equipment causes an accident at a nuclear power plant.

Government  has kept Kudankulam Unit #1 and #2 outside the purview of nuke liability act, saying they were being constructed before passing of that Act.

Now we are planning to install two more units here (#3 and #4),

but we want them under the nuke liability act. (so, if disaster happens due to faulty Russian equipment, we can demand money from them.)

Putin	This is wrong yaar! If #1 and #2 are outside Nuke liability then #3 and #4 should also be exempted.
Mohan	Sorry can’t help. If I make an exemption for you, then America and France will demand the same treatment. Ultimately no plant will come under Nuke liability act!
Putin	Alright then. If you want to build #3 and #4 with our help, AND you want them under Nuke liability then give us twice the money we had agreed earlier. (so I can use that money to buy insurance cover from third party to pay up for the disaster.)

Energy: Oil and Gas

Before Putin’s Visit	During visit
ONGC Videsh currently owns a 20 per cent interest in the Sakhalin-I project in Far East Russia. GAIL India made contract to buy LNG from GAZPROM. OVL and Russian co. made deal to explore Magadan-2 and Magadan-3 blocks in the Okhotsk sea in eastern Russia	Agreement for mutual investments and joint projects in third countries. We want capacity expansion of Sakhalin-II project. Also ONGC keen on Sakhalin-III and other new projects in Siberia, Arctic Shelf and Far East Russia.

Defense: Indo-Russia

Fifth generation aircraft Development, already discussed in old articles click ME.

During the summit India gave orders to buy

1. Sukhoi Su-30 fighter jets
2. Mil Mi-17 Military Helicopters

Science Tech: Indo-Russia

What is GLONASS?

• Global Navigation Satellite System.
• Glonass is a Russian space-based system with many satellites.
• It provides location and time information anywhere in the planet,
• use= military, civil and commercial
• Glonass is an alternative to the U.S.-controlled Global Positioning System (GPS).

Why India wants GLONASS Access?

• During Iraq Invasion, America had blocked GPS signals to Iraq and then inserted misleading GPS signals into Iraqi missiles and air force.
• Because of this, Iraq could not attack American defense forces with deadly accuracy.
• India should be prepared to meet “aggression by any developed country, including the U.S.A.” Hence over-reliance on GPS= bad. Need to put some eggs in GLONASS basket.

GLONASS: Military use?

1. GLONASS navigation system will allow Indian missiles, to strike within half a metre of distant targets= very accurate.
2. GLONASS fitted on Nuclear submarine Chakra= killer combo.

Civilian use	iPhone 4S mobile supports both GPS and GLONASS. You can use it to know distance covered during jogging etc. Finding shortest possible route during travel
Commercial use	Keep track of your school-buses, transport trucks etc.

Mohan-Putin signed agreement for use of GLONASS.

SnT #2: Joint research centres

1. Establishment of India-Russia Joint Science and Technology Centers in India and Russia,

To develop technology To commercialize that technology.

Nano-technology, Biomedicine Supercomputing.

On Afghanistan

India and Russia want Afghanistan to be free from

1. External interference (of PAK+China)
2. Extremism+ Terrorism
3. Drug trafficking.

We’ve agreed to work together in Afghanistan to achieve ^these.

Cooperation

Already Cooperating	During Putin’s visit
Energy Defense Space Trade And Investment Science And Technology Education Culture Tourism.	We’ve reviewed and updated the agreements.

Apart from that,

1. Russia has supported India’s entry as a full member of the Shanghai Cooperation Organization (SCO) Already Discussed click ME
2. Russia has reaffirmed that India as one of the most deserving and strongest candidate for the permanent member of the expanded UN Security Council.

No Joint Press Conference=Problem?

• Usually after a summit is over, the leaders of Both Nation hold a joint press conference.
• But this time, after 13^th India-Russia annual Summit, no join press conference was held.
• Critiques say this proves India-Russia friendship is going through difficult times.

But it is not true, because

1. Putin was on tight schedule.
2. Putin has broken his back in Judo practice, can’t stand or sit for long.
3. Mohan was afraid that during Joint Press conference, reporters would ask him uncomfortable questions on Delhi-Gangrape + demolition of only Hindu temple in Russia.

Therefore Joint press conference was avoided.

Summary

 

Epilogue

Mohan checks the bill

Item	Quantity	Price ($ Billion)
Sukhoi Su-30 fighter jets	42	1.6
Mi-17 Military Helicopters	71	1.3
Nuke plant	18	45
Total		50 billion

Mohan: There seems to be a mistake in the calculation. Total should be 47.9 billion dollars.
Putin: sorry mate, I don’t keep chillar just like Delhi’s rickshaw-walls. Figure rounded off to next 50s and 100s.
Mohan: But how am I going to justify this expense-mismatch in Government account books? CAG will rip me apart!
Putin: Chillx, just show it as bill for serving Desi Liquor to delegates and foreign journalists during this Summit.
Mohan: oh yes, then it’ll be a legit expense under diplomatic protocols. Indeed whaat an idea sir-ji

Mock questions

MCQs

Q1. find the Wrong match

Kudankulam	TN
Kovvada	Andhra
Kakrapar	Gujarat
Kaiga	Kerala

Mains

1. GLONASS (5m)
2. Shanghai Cooperation Organization (SCO)
3. Write a brief note on 13^th India – Russia Annual Summit (10m)
4. Discuss Indo-Russia nuclear cooperation. (12m)
5. Analyse emerging trends in Indo-Russia relationship with special reference to business and investment. (15m)

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