South Korea upbeat on n-pact with India, signs IT and space pacts (Roundup)
By IANSMonday, January 25, 2010
NEW DELHI - Keen to give their growing economic ties the shape of a strategic partnership, India and South Korea Monday agreed to create a framework for bilateral civil nuclear cooperation and also signed pacts in areas ranging from peaceful uses of outer space to cooperation in IT.
The two countries set a target of nearly doubling their $16 billion bilateral trade to $30 billion by 2014 and accelerate cooperation in areas like combating maritime piracy and joint development of military hardware.
Prime Minister Manmohan Singh held talks with visiting South Korean President Lee Myung-bak Monday evening on a wide range of bilateral, regional and global issues, including the intensification of economic ties, UN reforms and cooperation in civilian nuclear energy, defence and civilian space technologies.
The two sides inked four accords after the talks - related to cooperation in peaceful uses of outer space, IT, science and technology for the year 2010-12 and transfer of sentenced persons.
They agreed to set up a fund of $10 million (with each side contributing $5 million) to promote bilateral research ventures.
Manmohan Singh assured his South Korean guest that his government was doing everything possible to fast-track the $12 billion South Korean Posco steel project at Jagatsinghpur district in Orissa, the single largest foreign direct investment in India. He also hoped for more investment from Seoul in manufacturing and infrastructure sectors.
Cooperation in the areas of civilian nuclear energy figured prominently in the discussions.
Lee told Manmohan Singh he was “very optimistic” about progress in this area and stressed that South Korean nuclear companies were “very competitive” in this regard, reliable sources said.
“The two leaders shared the view that nuclear energy can play an important role as a safe, sustainable and non-polluting source of energy. They agreed to facilitate development of a framework for bilateral civil nuclear cooperation,” said a joint statement after the talks.
South Korea, a member of the 45-nation Nuclear Suppliers Group, backed consensus in the NSG for re-opening global nuclear trade with India in September last year.
Interacting with businessmen, Lee had said cooperation in civilian nuclear power with India could be a “productive” sector for collaboration.
Nuclear power accounts for nearly 45 percent of South Korea’s total electricity consumption. A South Korean consortium won $20.4 billion contract to build four 1,400-MW civilian nuclear power units in the UAE, beating American and French companies for one of Middle East’s biggest energy deals.
India has signed civil nuclear accords with seven countries - the US, France, Russia, Kazakhstan, Namibia, Argentina and Mongolia - and is expected to sign another one with Canada this year.
Lee will be the chief guest at the Republic Day celebrations, a signal honour bestowed on the leaders of those countries with which India wishes to develop strategic ties.
In economic sphere, the two sides agreed to encourage FDI and to finalise a revised Double Taxation Avoidance Convention (DTAC) before the end of 2010. A joint committee on investment promotion will meet in New Delhi later this year.
