India, S. Korea hope for early commencement of POSCO steel plant project

India and South Korea on Thursday welcomed the progress made in the POSCO steel plant project in Odisha, and have agreed to continue to cooperate for the successful implementation of the project.

In the joint statement issued after summit-level talks between South Korean President Park Geun-hye and Prime Minister Manmohan Singh here, the two leaders hoped that POSCO would commence work on the project at an early date.

Both sides have agreed to make joint efforts to expand and deepen the bilateral economic relationship.

India and South Korea reaffirmed their commitment to exploring measures for future economic cooperation in a more comprehensive manner.

In this respect, the two leaders agreed to start discussion on creating a roadmap for mid and long term economic cooperation, while sharing experiences on economic policies between India and Korea.

Both sides agreed to establish a CEO's Forum which would be mandated to submit a report on further enhancing economic cooperation to the two Governments.

The two leaders shared the view that the Comprehensive Economic Partnership Agreement (CEPA) has contributed to enhancing trade and investment flows between the two India and South Korea.

The two sides reaffirmed the need to increase trade in goods and services; and investment through the upgrading of the CEPA, and agreed to make every effort to complete the process at the earliest.

The two leaders welcomed initialing of the revised Double Taxation Avoidance Agreement, and agreed to take necessary steps to put it into effect at an early date.

They agreed to establish the 'India-ROK Joint Trade and Investment Promotion Committee' at cabinet level as an expanded and restructured replacement of the current 'India-ROK Joint Investment Promotion Committee.'

They also welcomed the opening of a KOTRA office in Bangalore and a KITA office in New Delhi, hoping that both offices will serve to expand trade and investment between the two countries.

The two sides welcomed the possibility of establishing a Korean Industrial Park in Rajasthan, thereby agreeing to enhance cooperation to nurture a favorable environment for investors from both countries.

Both India and South Korea have noted the important role of increased air flights in promoting economic, social and cultural exchanges and people-to-people interactions, and have agreed to revise the India-ROK Air Services Agreement at an early date in a mutually beneficial way.

The two countries agreed to enhance cooperation between relevant institutions in the area of finance to bolster bilateral economic ties.

They also welcomed recent initiatives like cooperation between India Infrastructure Financing Company Limited and Export-Import Bank of Korea, and the proposal to establish 200 million dollar Interbank Export Credit Line between the State Bank of India (SBI) and the Export-Import Bank of Korea.