Sharma, Putin discuss Sakhalin-III, nuclear ties

Commerce and Industry Minister Anand Sharma has raised the issue of Indian oil and gas companies’ participation in Russia’s Sakhalin-III project, one the world’s largest and most lucrative energy projects, with Russian Prime Minister Vladimir Putin. He also discussed cooperation in areas of civil nuclear energy and resumption of the Titanium project in Orissa.

ONGC Videsh has been looking to acquire oil equity in Sakhalin-III after success in bidding for oil fields in Latin America. However, the Russian side has been reluctant on assuring any participating interest to any company, as the new Suboil Law is yet to be passed by the Russian Parliament. The bill has been pending with the Russian Parliament, since being returned to the underground resources ministry for redrafting.

The new projects with significant reserves like Sakhalin-III are likely to be auctioned only after the law is passed. “I have raised the issue of Sakhalin-III and asked Prime Minister Putin to intervene in the same,” Sharma told Business Standard after the meeting.

He added that he had sought the prime minister’s involvement in resolving the long-pending Titanium project. “I extensively discussed the issue of resuming the Titanium project so that it can be resolved at the earliest and the project can take off,” he added.

The Rs.1,000-crore Titanium project was signed as part of a memorandum of understanding with the Orissa government in October 2008. However, since then, the project — Titanium Products Pvt (TPPL) — has been mired in disputes as partners have not been able to share the initial expenses made on the project.

During the meeting with the Russian prime minister, Sharma sought more investments by Indian pharma companies to facilitate generic drugs imports from India. Senior commerce and industry ministry officials would soon visit Russia to explore opportunities in the sector.

Sharma said seven Indian pharma companies had expressed interest in investing in the sector. He did not mention the names of those companies.

He also had a “significant discussion” on the areas such as defence and civil nuclear cooperation, but refused to give details. The minister concluded his Russia visit today after which he would be visiting Madrid and Washington for strategic dialogue.