India-Russia extend energy and infra cooperation, sign string of MoUs

India and Russia are eyeing deeper participation in the infrastructure sector with a host of memorandums being signed during Russian President Vladimir Putin’s brief visit. The agreements cover crude oil supply deals, manpower training, technology transfer for oil refineries, and research in the field of metallurgical technologies among others.

According to officials in the know, largely the focus of these agreements is to encourage Indian companies for using more Russian technologies in capacity building.

The Memorandum of Understanding (MoU) for Cooperation in the Power sector between India’s NTPC and Russia’s Inter RAO-Export is aimed at furthering cross border trade of electricity. Officials from NTPC’s business development wing are also said to have met with Russian counterparts in Putin’s delegation.

According to the Ministry of External Affairs, the MoU seeks to jointly provide services for Capability building exports in the power sector, outside their respective countries of origin.

A crude oil supply agreement between Rosneft and Indian Oil Corporation (IOCL) was renewed at this visit. This was signed in February 2020 and India agreed to buy 2 million tons per annum of Russian crude oil under this deal. The crude will be supplied through the port of Novorossiysk by the end of 2022.

IOCL also signed two Statements of Intent of Collaboration with Russian state owned companies. Under one such agreement, IOCL and SIBUR, the largest integrated petrochemicals company of Russia, sought to consider possibility to explore the feasibility of setting up a Dual Feed Cracker Unit (DFCU) along with downstream units at Paradip, Odisha. SIBUR Petrochemical India, the domestic subsidiary of SIBUR, is focused on the construction of a butyl rubber facility in Jamnagar. The plant, which will operate at a capacity of 120,000 tonnes per year, is being built as a joint venture with Reliance Industries.

The other Statement of Intent of Collaboration was between IOCL and Gazpromneft for VGO Hydrocracking Technology. This technology is used to lower the amount of sulphur in auto fuels and make them more compliant to Bharat Stage-VI emission norms.

IOCL and Gazpromneft will also explore technology for Catalytic Iso-dewaxing for lobs, used for Base Oil production, and catalyst regeneration for fixed bed catalyst, used for extending the utility of equipment used in a refinery.

For the steel sector, three Memorandums of Cooperation were signed with Russia’s State Scientific Centre of Russian Federation - Federal State Unitary Enterprise Keldysh Research Centre (SSC FSUE Keldysh Research Centre). These were signed separately with India’s Steel Authority Of India (SAIL), Jindal Steel and Power (JSPL), and JSW Steel. All three agreements sought to join efforts in carrying out research, technological and strategic work in the field of metallurgical technologies.