Libmonster ID: IN-1225
Author(s) of the publication: S. A. BARANOV

S. A. BARANOV, Candidate of Historical Sciences, 1st Secretary of the Ministry of Foreign Affairs of the Russian Federation

Keywords: Russian-Indian cooperation, energy sector

Cooperation in the energy sector remains one of the most important areas of Russian-Indian trade and economic relations, as well as bilateral relations in general. This area of cooperation is regularly discussed during contacts at both the highest and working levels. A solid regulatory and legal framework has been created for various aspects of bilateral energy cooperation.

Following the visit of the Prime Minister of the Russian Federation Vladimir Putin to India on March 12, 2010, an Agreement on cooperation in the peaceful use of nuclear energy and a Roadmap for the serial construction of nuclear power plants in the Republic of India under the Russian project 1 were signed. An intergovernmental Agreement on cooperation in the oil and gas sector was signed at the Russian-Indian summit in New Delhi on December 21, 2010.2

This article discusses issues of bilateral cooperation in the following areas:: 1) nuclear power industry, 2) electric power industry, 3) oil and gas industry.


Cooperation in the field of "peaceful atom" is one of the key components of the Russian-Indian strategic partnership.

The legal basis for this cooperation is the Agreement between the USSR and India on Scientific and Technical Cooperation in the Field of Peaceful Uses of Atomic Energy, concluded on January 22, 1979. In November 1988, an agreement on cooperation in the construction of a nuclear power plant in India was signed. It was later supplemented by an intergovernmental agreement on cooperation in the construction of additional nuclear power units at the Kudankulam site (Tamilnadu), as well as in the construction of nuclear power plants based on Russian projects at new sites in India, signed during the Russian-Indian summit in New Delhi in December 2008. 3 The main object of Russian-Indian cooperation in the field of nuclear energy is In this area, the construction of two nuclear power units with Russian VVER-1000 reactors (NPP-92 project) with a capacity of 1000 MW each, which has been underway since 2002 at the Kudankulam site.

In accordance with the contracts, the scope of obligations of the Russian side includes: development of operational, commissioning and operational documentation; supervision of the construction of NPP buildings and structures; supply of equipment and materials from Russia and third countries; technical support during the installation and commissioning of nuclear power plants; training of Indian operating and maintenance personnel in Russia 4.

In 2005, VVER-1000 reactors were delivered for the first and second power units. Due to the lack of experience and skilled labor of the Indian side, which carried out construction and installation work, the commissioning of the first power unit was postponed several times. It was eventually scheduled for December 2011. However, in August 2011, protests began in the area of the Kudankulam nuclear power plant, organized by the so-called "People's Movement against Nuclear Energy", demanding to stop its construction.

Since the demonstrators effectively blocked the station, Russian specialists were deprived of the opportunity to perform their duties. Workers who came from the states of Northern India and under pressure from activists of the movement were forced to return to their places of permanent residence. At the station, work has begun on its conservation 5.

According to NDTV, the suspension of work on the construction of the Kudankulam nuclear power plant due to the blockade by protesters cost the Indian treasury 50 million rupees (about $1 million)daily.6. In this regard, the Prime Minister of India, M. Singh, in an interview published in Science Magazine (February 2012), inter alia, stated: "What is happening in Kudankulam? This atomic energy program has faced difficulties because NGOs, mostly based in the United States, do not appreciate our country's need to increase electricity production. " 7

Ultimately, the Government of India revoked the licenses of non --

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How many NGOs involved in the campaign against the Kudankulam nuclear power plant froze the accounts of the Indian Social Action Forum, which brought together about 700 non-profit organizations and organized rallies and demonstrations.8 Thus, the foreign financial support of the protesters was blocked. In March 2012, the police unblocked the approaches to the station, ensuring the resumption of work.

In September-October 2012, nuclear fuel was loaded into the reactor of Unit 1 of Kudankulam NPP9. Although there were new protests in this regard, they were not as large-scale as in 2011, and they were quickly stopped by the police.

On May 6, 2013, the Supreme Court of India rejected petitions from opponents of nuclear power to recognize the level of security and operational safety of the Kudankulam NPP as unsatisfied. The verdict of the Supreme Court, which was published, emphasized that this nuclear power plant is safe and secure, meets the interests of society as a whole and is necessary for the further growth of the Indian economy.10

After the end of fuel loading, unit N 1 was at the stage of physical start-up. On July 13, 2013, this unit reached the minimum controlled power level. The Indian Nuclear Power Regulatory Authority has granted approval to do so, indicating that all the plant safety requirements set out in the Supreme Court's May 6, 2013 order have been met11. Currently, the construction of the next, second unit of the Kudankulam NPP is at the final stage.

It is important that the Kudankulam NPP project, which meets all the "post-Fukushima" safety requirements*, in addition to traditional active safety systems, implements a number of technical solutions based on" passive " principles. Such construction solutions and technological systems as a double containment and protective shell, heat removal systems from the reactor unit, a core melt trap, and a high-pressure rapid boron injection system are used. In addition, additional tanks were constructed that provide a passive long-term supply of borated water to the reactor, a system for passive filtration of the inter-shell space,and a closed bucket of industrial water intake for NPP 12.

It should be noted that India has very limited opportunities to increase electricity production, so increasing the capacity of nuclear power is an urgent need to ensure the development of the country.

The total capacity of 20 operating nuclear reactors in India in 2012 was 4,780 MW (about 2.39% of the total electric power potential -199,877 MW). 7 reactors with a total capacity of 5,300 MW are under construction. It is planned to increase the capacity of nuclear power plants in India to 10,080 MW by 2017 due to their introduction into operation13.

Capacity was expected to increase from 4,780 MW to 20,000 MW by 2020 and 63,000 MW by 2032,14 However, in December 2011, the Indian Parliament was presented with a downwardly revised target of 14,600 MW by 2020/2021 and 27,500 MW by 2032,15

In 2009, the Government of India allocated five new sites for the construction of nuclear power plants for foreign projects: for Russia - in Kudankulam and Haripuram (West Bengal), for the United States-in Chhayamiti Virdi (Gujarat) and Kovwada (Andhra Pradesh), and for France - in Jaitapur (Maharashtra)17.

Even with downwardly adjusted plans for the development of nuclear energy, the Indian market remains very capacious. There will be plenty of room for us, the Americans, and the French. However, unlike other potential partners in the construction of nuclear power plants, Russia already has significant practical experience in working in India.

At the same time, it is impossible not to take into account the fact that the law adopted in India in 2010 The Law on Civil Liability for Nuclear Damage provides for the liability of equipment suppliers, not nuclear power plant operators, for possible nuclear incidents in the future. This significantly reduces the attractiveness of cooperation in the construction of nuclear facilities in India.

Clearly, the logic of this law can be demonstrated by a hypothetical example, if the responsibility for an accident was borne not by drivers, but by car manufacturers.

However, the supreme intergovernmental Russian-Indian agreement of 2008 does not provide for such responsibility on the part of the Russian side. Article 13 of this agreement expressly imposes on the operator of the nuclear power units at the Kudankulam site full responsibility "for any damage caused as a result of any nuclear incident that may occur at the nuclear power plant, as well as in connection with a nuclear incident during the transportation, handling or storage of nuclear fuel and any contaminated materials outside nuclear power plants." materials or parts of NPP equipment both on the territory of the Republic of India and outside it". Moreover, "responsibility for nuclear damage caused by a nuclear incident that occurred during the handling and transportation of nuclear fuel passes from an authorized Russian organization to an authorized Indian organization after the physical transfer of fuel at the place of delivery" 18.

Be that as it may, India is in dire need of a significant increase in electricity production, and nuclear power is a real means of solving this problem. Hence - its interest in further expansion-

* In July 2013, Japan adopted new standards adopted by the Atomic Energy Control Committee, which take into account the experience of the Fukushima disaster and are designed to prevent any emergency situations in the event of a tsunami, terrorist attacks, plane crashes, server hacking attacks and a bomb explosion.

page 60


Owenjisi Videsh Ltd. ' s share in energy resources extraction in the Sakhalin-1 project

Fuel type

Fiscal year *








Oil (million tons)








Gas (bcm)








* The fiscal year in India begins on April 1 and ends on March 31.

Составлена автором по годовым отчетам "ОуЭнДжиСи видеш Лтд." // site ONGC Videsh Limited: ONV Annual Report 2005 - 06, p. 208 - - 06 new.pdf; 2006 - 07, p. 95 - 07_Part-II.pdf; 2007 - 08, p. 121 - - 08-Part_III.pdf; 2008 - 09, p. 97 - OVL_Annual_Report_2008 - 09.pdf; 2009 - 10, p. 201 - - 10.pdf; 2010 - 11, p. 118 -; 2011 - 12, p. 123 - / PDF/annual_report_201l_12.pdf

cooperation in the field of "peaceful atom" and preserving the prospects of bilateral cooperation in the construction of nuclear power plants. Of course, provided that the issue of civil liability for nuclear damage is resolved.


In the electric power sector, cooperation in the implementation of large - scale projects in the heat and hydro power sector is developing successfully. Among them are thermal power plants - "Bar", "Korba", "Sipat"; hydroelectric power plants - "Teri", "Koteshwar".

In November 2010, JSC VO Technopromexport and the Indian National Thermal Power Corporation (NTPC Ltd.) completed negotiations to agree on the terms of continuing implementation of the contract for the construction of turnkey boiler islands of the Bar TPP 19Relevant work is underway.

Since 2005, JSC EMAlliance has been manufacturing boiler equipment for three power units of the Bar Thermal Power Plant (Bihar) under a subcontract with Technopromexport. The total capacity of the power plant will be 1,980 MW. The cost of the boiler equipment contract is about $165mn 20.

Equipment manufactured by EMAlliance OJSC was delivered to India, in particular, for the Neiveli, Vindyachal, Obra, Bokaro, and Bhilai thermal power plants.

Power Machines, a Russian power engineering company, has been present on the Indian energy market for about fifty years. The total capacity of the equipment delivered and installed over these years is 4,500 MW, or more than 4% of the total energy capacity in India. The largest facilities where Russian equipment is used are Windyachal and Kahalgaon thermal power plants; Teri and Balimela hydroelectric power plants; Konashima CCGT, etc.

Power Machines OJSC has a subsidiary company, Power Machines (India) Ltd.21, which supplies equipment and materials, as well as provides construction, installation and engineering services from the local market.

Large-scale bilateral cooperation has developed in these areas over the past decade. In the course of their work, Russian organizations have accumulated significant practical experience, which they are ready to continue using in new joint projects.


A number of large-scale long-term projects are being implemented in this area. Since 2001. Indian State Oil and Gas Corporation Owenjisi (through its subsidiary Owenjisi Videsh Ltd.) participates as an investor in the Sakhalin-1 oil and gas project, in which the Indian side owns 20% of the shares. Under this project, from October 2005 (start of production) to April 2012, Owenjisi Videsh Ltd. received a total of more than 9.7 million tons of oil, including 2.4 billion cubic meters of natural gas (see Table).

In addition, in 2008, Ouenjisi acquired the rights to develop an oil and gas field in the Tomsk Region22.

There are good prospects for developing bilateral cooperation not only in the field of oil and gas production and geological exploration, but also in the construction of infrastructure for gas transportation to India.

Stroytransgaz has been operating in the Indian market since 2002. During its operation, it has built more than 3,000 km of oil and gas pipelines, water pipelines, product and pulp pipelines, as well as related facilities 23Including:

Chennai water main. In October 2002, together with the Indian company Gammon India Ltd., a tender was won for the construction of a water pipeline with a length of 114 km. The project was completed in January 2005. 24

-Bayladila-Visakapatnam pulp Pipeline. In December 2002

page 61

A consortium with Essar Construction Ltd. has signed a contract with the Indian company Nu-Grade Pellets Ltd. for the construction of a 267 km long pulp pipeline in the Indian state of Andhra Pradesh. The pulp pipeline is intended for transportation of iron ore mixture from the processing plant in Bayladila to the metallurgical plant in Visakapatnam. The project was completed within 18 months 25.

-Baroda-Ahma-Dadad-Kalol, Anand-Rajkot, Dahej-Uran gas pipelines. In a consortium with Indian companies Essar Construction Ltd. and Indian Oil Corporation Ltd., the tender for the construction of the 135 km long Baroda-Ahmedabad-Kalol gas pipeline was won. The contract was signed in April 2003. The construction of the facility was completed in 2004. 26

As part of the Gujarat gasification program, construction of the 168 km long Anand-Rajkot trunk gas pipeline in India was started in October 2005 and completed in 2006.27

In April 2006, a contract was signed for the construction of a 191.98 km section of the Dahej-Uran trunk gas pipeline in India. The project was completed in 2007.28

-Chennai-Trichy-Mudarai and Mundra-Delhi product pipelines. In September 2005, a consortium with Essar Construction Ltd. completed the construction and installation of a 688 km long product pipeline in southern India. It is intended for transportation of petroleum products from the Indian Oil Corporation Ltd. refinery located in Chennai to the Trichy and Madurai area (Tamil Nadu).29.

In May 2006, a general contract was signed for the construction of two sections of the Mundra-Delhi product pipeline with a length of 544 km in India. The product pipeline with a total length of 1,087 km is intended for transportation of petroleum products to the northern part of India. Construction completed in 2007 30

The East-West gas pipeline. In 2006, a contract was signed with Reliance Gas Transportation Infrastructure Ltd. for the construction of two sections (249 km) of India's largest East-West gas pipeline system with a total length of 1,386 km from Kakinanda (Andhra Pradesh) to Bharuch (Gujarat). The pipeline connected the Krishna Godavari gas-bearing areas located in the Bay of Bengal to an oil refinery owned by Reliance Industries Ltd. in Jamnagar, Gujarat. Construction was completed in 2008 31

Bharuch-Jamnagar gas pipeline. In 2008, a consortium with Essar Construction Ltd. completed the construction of the Badbhut-Gana section (109 km) and the Bharuch-Jamnagar gas pipeline with a total length of 200 km as part of the gasification of Gujarat 32.

- Vijaypur-Dadri gas pipeline. The project was implemented in a consortium with Essar Construction Ltd. The contract provided for the construction of two sections of the pipeline with a length of 169 and 163 km 33. Construction was completed in 2011.

The Russian company Stroytransgaz, which is well-established in the implementation of gas pipeline construction in India, intends to participate in new projects.

In addition, Zarubezhugol, NOVATEK and a number of other major Russian companies are actively operating in the Indian market.

In the gas sector, the main area of cooperation with Indian companies is the organization of deliveries of liquefied natural gas (LNG) to Gazprom. In 2009 and 2011, Gazprom exported 10 LNG shipments totaling 0.65 million tons to India.34

In 2012, Gazprom Marketing and Trading delivered 5 LNG shipments to India, totaling 0.29 million tons (0.39 billion cubic meters).35

In 2011, memoranda of understanding were signed on the possibility of Gazprom supplying LNG to Indian companies GAIL, G-EsPiSi, Indian Oil, and Petronet with a total volume of up to 10 million tons per year. In 2012, the first long-term contract (20 years)was signed contract with GAIL for the supply of LNG in the amount of 2.5 million tons per year 36Negotiations are continuing with the other companies mentioned above to conclude long-term contracts for the purchase and sale of LNG.

It is important that cooperation in the energy sector is not limited to the supply of energy carriers to India. It also includes the supply of equipment and construction of energy infrastructure facilities. In 2012, Russia exported $175.5 million worth of mineral fuel, oil and their distilled products to India (2.2% of the total export volume of $8 billion), while energy exports totaled $ 8 billion.-

page 62

mining operations - by $543.6 million (6.8%) 37.

* * *

Russian-Indian cooperation in the field of energy meets the strategically important challenges facing India in strengthening energy security and ensuring the country's development.

This is a high-tech cooperation that meets high international standards. The decision of the Supreme Court of India of May 6, 2013 is another proof of this.

Indicators of energy cooperation with India allow debunking claims about the "antediluvian" nature of the structure of Russian-Indian trade. India is a country where Russian exports are dominated not by raw materials, but by machine and technical products (48.9%).

The presence of mutual interest determines the preservation of prospects and opportunities for further expansion of energy cooperation between Russia and India.

1 Upon completion of the Russian-Indian negotiations, a ceremony of signing joint documents was held, March 12, 2010 / / Website of the Government of the Russian Federation - docs/9723/

2 Official visit to India. Documents signed following the Russian-Indian talks on December 21, 2010 / / Website of the President of the Russian Federation - notes/823

3 Intergovernmental and interdepartmental agreements between the Russian Federation and the Republic of India (reference information), 20.06.2013 / / Website of the Ministry of Foreign Affairs of the Russian Federation - http://www.mid. ru/bdomp/nsrasia. nsf/1083b7937ae580ae432569e7004199c2 / 9751bd42b0d06908c325744a00428d7b!OpcnDocument

4 Ibid.

Pakhomov E. 5 Indian engineers carry out conservation of the equipment of the Kudankulam NPP (RIA Novosti, 15.11.2011) / / Site "Energy and Industry of Russia" - news/base/2011/68007.htm

6 India loses $1 million daily due to protests at the Kudankulam NPP, 11.03.2012 / / Russian Atomic Community website -

Faraz Ahmad. 7 Probe shows foreign hand behind Kudankulam N-protest: PMO // The Tribune, 25.02.12 - 2012/20120225/main2.htm

Baev A. 8 In India, 4 thousand foreign agents were covered / / Izvestiya, 25.06.2013.

9 India confirmed the completion of fuel loading at Kudankulam-1, 03.10.2012 / / Site " AtomInfo.Ru" -

Pakhomov E. 10 The Supreme Court of India approved the launch of the Kudankulam NPP / / RIA Novosti, 06.05.2013 - news/ 20130506/935990357.hlml

11 India launches first power unit of Kudankulam NPP, 15.07.2013 / / Expert Post website - . html

12 The first power unit of Kudankulam NPP reached the minimum controlled power level, 18.07.2013 / / Smart website malno-kontroliruemyy-uroven/

13 Corporate Profile. Nuclear Power Corporation of India Limited. Mumbai, August 2012, p. 8 - Profile 2012.pdf; Power Scenario At a Glance. Central Electricity Authority, November 2012, p. 17 - planning/powcrscenario.pdf

Athavale Dileep. 14 India to add 20,000 MW nuclear power capacity by 2020 // The Times of India, 09.09.2011.

15 Nuclear Power in India, July 2013 // World Nuclear Association -

16 Work on the Harinur site never started due to local protests, as well as the negative attitude of the West Bengal State Government (formed by the Trinamool Congress Party following the 2011 elections) towards the project.

17 Designation of sites for setting up Light Water Reactor. Press Release, October 16, 2009 // Ministry of External Affairs, Government of India- +of+sites+for+setting+up+Light+Water+Reactor

18 Agreement between the Government of the Russian Federation and the Government of the Republic of India on Cooperation in the construction of additional nuclear power units at the Kudankulam site, as well as in the construction of Russian-designed nuclear power plants at new sites in the Republic of India // Website of the Russian Foreign Ministry - http://www.mid.rU/BDOMP/spd_md.nsf/0/53ED 94377AV1E19844257BV700224129

Belikov D., Dzaguto V. 19 "Technopromexport" defrosted India (Kommersant-Online, 24.12.2010) / / Website "InterEnergo Portal" -

20 TPP "Bar", 25.07.2013 / / Website of JSC "EMAlliance" -

21 Since April 17, 2007, the company "LMZ Energy (India) Limited" has been officially renamed "Power Machines (India) Limited", its Russian-language name is " Power Machines (India) Ltd.", 18.04.2007 / / website of JSC "Power Machines" -]

22 In August 2008, OUPJISI Videsh Ltd., a subsidiary of the state-owned Indian Oil and Natural Gas Corporation, entered into an agreement to purchase the British company Imperial Energy, which held licenses for the development of 15 fields in the Tomsk Region. The transaction amount is approximately $2.6 billion. [Imperial Energy cedes its partner's stake in the company for the development of the Bazhenov formation, 07.05.2013 / / Website -]

23 Stroytransgaz will continue construction of fuel and energy facilities in India, 23.12.2010 / / InterEnergo Portal website - 2010/12/23/strojtransgaz-prodolzhit-stroitelstvo-obektov.html

Bokhanovskiy L. V. 24 Ne ustoychivatsya na nasledstvom [Not to stop at what has been achieved]. Mirovaya energetika, 2008, N 11-12 (59), p. 48 - 51 // Stroytransgaz website -

25 Ibid.; Bayladila-Visakapatnam pulp pipeline / India. Completed projects / / Website of JSC Stroytransgaz sludge line

26 Baroda-Ahmedabad-Kalol gas pipeline / India... pipeline

27 Anand-Rajkot gas pipeline / India... -

28 Dahedj-Uranus / India gas pipeline... - pipeline

29 Chennai-Trichy-Madurai product Pipeline / India... - productline

30 Mundra-Delhi / India product pipeline... - pipeline

31 East-West gas pipeline / India... -

32 Rajkot-Jamnagar gas pipeline / India... -

33 OAO Stroytransgaz 2010 annual report, p. 32 / / website of OAO Stroytransgaz - / 2010. pdf

34 Gazprom has signed a long-term LNG purchase and sale contract with GAIL / Release, 01.10.2012 / / Gazprom website- 45022/

35 Gazprom in figures for 2008-2012 Handbook, p. 65 / / Gazprom website - gazprom-reference-figures-2008 - 2012-rus. pdf

36 India. LNG supplies / / Gazprom website-

37 Trade and economic cooperation between Russia and India. 10 main goods of Russian export to India in 2012 / / website of the Ministry of Economic Development of the Russian Federation - http://www.ved.


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