February 6, 2002

    Indian and Russian sides agreed upon exchanging scientific and technical information on continued basis on coal industry in their respective countries.

    Shri N.K Sinha, Secretary Coal in the Ministry of Coal and Mines in his opening address said that India has long association with Russia in the field of open-cast mining, which is now playing a dominant role in the coal sector. India, he said, is projected to increase its coal production from the level of 323 million tonne in 2001-02 to 400 million tonne in 2006-07 and emphasized that improving productivity and coal quality are the two major objectives of Indian coal sector.

    Mr. Sinha said that Russia contributed greatly in the development of Indian coalfields by preparing master plans for Singrauli, Ib Valley and Talcher coalfields and by planning several large open-cast and underground projects which are being successfully implemented today. He expressed hope that Indo-Russian Cooperation can go a long way in meeting future objectives. Intimating liberalization process in Indian coal sector, he suggested that there is immense potential for Russian investment in coal mining and for leasing of equipment to new mines/existing mines.

    Mr. Sinha further informed that there is perceptive shift towards market economy in both the countries resulting in competitiveness. In India, the coal companies are now operating in a regime of self-reliance. Procurement of equipment is now undertaken on the basis of global tender and only the commercially "best" option is accepted.

    Mr. A.B Yanovsky, Deputy Minister of Energy and Leader of Russian Delegation said that credit facilities for specific projects in coal sector may be provided by Russia on mutually agreed terms. He agreed to the view point of Mr. Sinha that follow-up of the protocol is more important than its signing.

    The Protocol of the Seventh meeting of the Indo-Russian Working Group on Coal was signed today by Shri N.K Sinha, Secretary Coal from Indian side and by Mr. A.B Yanovsky, Dy. Minister of Energy from Russian side.