Russian Firms See Energy Potential, Delegation Coming

Font Size

Print

Feedback

Email

Discuss

New Delhi, Aug 15: Russian businessmen working in energy sector will be coming to India on their first ever visit. They will be preceding Russian president Vladimir Putin’s visit by the year-end. Senior officials said the delegation would be discussing investment in refineries, oil and gas fields, and technology relating to the petroleum sector.

Speaking to FE, senior external affairs ministry officials said the delegation would also be exploring potential tie-ups in the oil and gas sector. “It will be the first concerted exposure of Russian industry to the Indian petroleum facility,” said an official.

Russian companies are currently participating in the construction of nuclear and hydel power plants, highways, modernisation and construction of steel plants, mining, oil and gas exploration in the Arabian Sea and the Bay of Bengal as well as in the north-eastern states.

The largest foreign investment of an Indian company has been made in the Russian Federation. The ONGC-Videsh Limited has invested $1.7 billion for the development of oil and gas supplies at Sakhalin-I project in Russia. This investment affirms the highest priority which the energy sector has been accorded by the two countries in their agenda for joint ventures, officials said.

India is likely to procure from this area four million tonne of crude after five years and gas between five to eight million cubic meters per day. These hydrocarbons could be shipped to India from the Chinese or South Korean ports. Given the focus on energy security, the external affairs ministry has also agreed to set up a new territorial division on energy and environment in South Block, the officials added.

Russia is also involved in the construction of the Kundankulam Nuclear Power Plant in Tamil Nadu. There are assurances from the Russian Federation about its willingness to collaborate with India for the peaceful uses of atomic energy.