Sakshi Education
SAARC countries agreed to cooperate in energy. The eight nation’s summit was held on 26th and 27th November, 2014. The summit was held in SAARC head quarter, i.e. Nepal. The theme of the summit was ‘Deeper integration for peace and prosperity’, however actually, three agreements were planned by the SAARC nations, but due to Pakistan’s opposing it could not possible to pass those three.
The member countries on 27th November signed a framework agreement on cooperation in power sector but failed to finalise the much-awaited motor vehicle and railway pacts for greater people-to-people contact and movement of goods due to opposition from Pakistan.
There were hectic efforts to pursue the Pakistani side, which stalled the inking of the pacts on the pretext that internal processes were not completed following which three months’ time was set for getting approval. The framework energy pact will enable cooperation in the power sector among the eight member countries and facilitate integrated operation of the regional power grid.
Pakistan’s opposition to connectivity pacts came notwithstanding strong push by all member countries to have these pacts for greater transport links in the region. Diplomats said the agreements have discussed at various senior levels and there had been no objection from any country and earlier no one had indicated that they needed approvals of their internal processes.
According to the declaration, SAARC countries also resolved to build an economic federation in 15 years. Pakistan reportedly decided to clear the energy pact, which facilitates trade of electricity among all SAARC nations
Agreements on motor vehicle movement and railway linkages are expected to be cleared within a time frame of three months, and they will be signed by Transport Ministers.
India had opposed Chinese observer Liu Zhenmin’s request for an “elevated” relationship with the SAARC, as a dialogue partner, calling for only “project-based” cooperation.
India spoke on terrorism threat
India has told that terrorism is big threat and challenge that is being faced in the region. India called for a "collective response" by SAARC to deal with the menace while pitching for 3Cs - Culture, Commerce and Connectivity - for deeper integration for peace and prosperity in South Asia.
India’s External Affairs Minister Sushma Swaraj strongly emphasised on improving road, rail, sea and air connectivity among the member countries to spur economic growth
Infra project funding facility: Modi
Seeking to strengthen economic ties within the SAARC region, Prime Minister Narendra Modi on 26th November proposed a special purpose facility to finance infrastructure projects and called for common standards to speed up trade activities.
Noting that SAARC nations have failed to move with the expected speed, he said, that less than five per cent of the region’s global trade takes place between SAARC nations. Even at this modest level, less than 10 per cent of the region’s internal trade takes place under SAARC Free Trade Area. Infrastructure is the region’s “greatest weakness and its most pressing need”, he said, adding it is harder to travel within the region than to Bangkok or Singapore.
According highest priority to infrastructure development, Modi said the proposed Special Purpose Facility would help in funding projects in the region. Touching upon ease of doing business in India, Modi underlined the need for extending the same to SAARC region.
The Prime Minister emphasised that nowhere in the world are collective efforts more urgent than in South Asia and “nowhere else is it so modest.” Even though Indian companies are investing billions abroad, Modi said that less than one per cent of it flows into the SAARC region.
To boost trade activities among member countries, Modi said India would now give business visa for 3-5 years for SAARC. Talking about various efforts and initiatives with SAARC countries, Modi said India would soon launch a new arrangement to meet Maldives’ need for oil.
India has given five South Asian partners duty free access to 99.7 per cent of their goods and prepared to do more with others, he added.
According to Modi, India’s vision for the SAARC region rests on five pillars — trade, investment, assistance, cooperation in every area, contacts between our people — through seamless connectivity.
Agreements with Nepal
Prime Minister Narendra Modi on 25th November held talks with Nepalese counterpart Sushil Koirala on key strategic issues after which 10 agreements, including a pact on $1-billion assistance to Nepal, were inked.
A host of strategic issues, including defence and security, were discussed between Modi and Koirala. Later Modi inaugurated a trauma centre built by India at Kathmandu's Bir Hospital.
Following the talks, the two sides finalised terms of the $1-billion Indian assistance for Nepal's infrastructure development, announced by Modi during his August visit.
The agreement for Line of Credit to the neighbouring state was signed between Nepal finance ministry's Joint Secretary Madhu Kumar Marasini and Deputy Managing Director of Exim Bank David Rasquinha.
India and Nepal signed the Motor Vehicle Agreement under which permit would be given to vehicles to ply on designated routes in each other's country.
They also inked three twin-city pacts between Kathmandu-Varanasi, Janakpur-Ayodhya and Lumbini-Bodh Gaya. The 10 agreements also include, memoranda of understanding on training at Nepal Police Academy, tourism, traditional medicines and youth exchange.
A pact was also signed on a project development agreement over the 900 megawatt hydro-electric project on the Arun river in Nepal.
Also Modi announced that India has decided to allow Nepal nationals to carry Rs 500 and Rs 1,000 denomination notes up to the limit of Rs 25,000
India also gifted Nepal a mobile soil testing lab to boost soil health monitoring and adoption of best agricultural practices.
Kathmandu-Delhi bus service begins: Prime Minister Narendra Modi and his Nepalese counterpart Sushil Koirala on 25th November flagged off the first Kathmandu-Delhi bus service, called Pashupatinath Express, from Nepal. The bus will cover 1,250 km in 30 hours from Delhi. The fare is Rs 2,300 a passenger.
PM hands over HAL's Dhruv helicopter to Nepal: Prime Minister Narendra Modi on 25th November handed over an indigenous Advanced Light Helicopter (ALH) — Dhruv — built by the Hindustan Aeronautics Limited to the Prime Minister of Nepal Sushil Koirala at Kathmandu. The copter will be used by the Nepalese Army.
Dhruv helicopter in the Mark-III version with Shakti engines, glass cockpit and avionics would benefit Nepal, as it has a mountainous terrain and adverse environmental conditions.
The helicopter has aided in both military and civil operations. It is designed to meet the requirements of both military and civil operators. Dhruv has also been exported to Ecuador, Mauritius and Maldives. The Ecuador Air Force (FAE) operates five Dhruv helicopters with their president choosing to fly in one of them. Dhruv is, according to HAL, particularly useful in meeting the arduous tasks in difficult terrains.
Dhruv is a multi-role, multi-mission new generation helicopter in the 5.5 tonne weight class and meets the US’s Federal Aviation Authority specifications. It has demonstrated its capability in long distance flights, vertical climb and manoeuvring. Dhruv is an all-weather helicopter which can carry 10-16 people at heights of 10,000 feet.
The helicopter, which can cost anywhere between Rs 60-80 crore depending on the customisations, is presently exported to at least three other countries, including the Maldives and Ecuador.
Bilateral meetings with SAARC countries
Prime Minister Narendra Modi on 26th November held structured meetings with heads of Afghanistan, Bangladesh, Bhutan, Sri Lanka and Maldives and discussed various issues including satellite, solar energy, medical and terrorism too. A fairly extensive discussion between Indian and Bangladesh Prime Ministers was held to tackle the menace of terrorism.
Prime Minister has invited Bhutan Prime Minister Mr. Tshering Tobgay to attend Vibrant Gujarat coming January which has been accepted by Mr. Tobgay.
Calling for greater economic cooperation between the nations of the region he said that less than 10 percent region internal trade take place under SAARC Free Trade Area
OTHER IMPORTANT POINTS:
Leaders that attended the summit
-The South Asian Association for Regional Cooperation was set up in 1985 with the belief that cooperative action among the member countries would usher in an era of shared prosperity. The nations are India, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan
-Economic integration between member countries is a prerequisite for a strong and vibrant Saarc. Not much headway has been made in intra-regional trade despite the South Asian Free Trade Agreement (Safta) and South Asian Preferential Trade Agreement (Sapta).
-Intra-regional trade hovers at around 4-6 per cent.
-India has the most sophisticated financial market in the Saarc region with world class regulation and effective compliance. The markets of other member countries are plagued by a multitude of problems, lack of liquidity being one of them. An integrated platform would enable investors to invest in their own domestic companies with less risk as the shares would be more liquid and the listed companies better regulated.
-India manages to attract significant foreign portfolio investments, but the accruing to India from the proposed platform would not be any less compared to other member countries.
-Other Saarc countries not only have a small financial market, they are poorly regulated as well.
-Combined clearing, settlement and risk management corporations can be promoted, with equity participation by member countries.
The member countries on 27th November signed a framework agreement on cooperation in power sector but failed to finalise the much-awaited motor vehicle and railway pacts for greater people-to-people contact and movement of goods due to opposition from Pakistan.
There were hectic efforts to pursue the Pakistani side, which stalled the inking of the pacts on the pretext that internal processes were not completed following which three months’ time was set for getting approval. The framework energy pact will enable cooperation in the power sector among the eight member countries and facilitate integrated operation of the regional power grid.
Pakistan’s opposition to connectivity pacts came notwithstanding strong push by all member countries to have these pacts for greater transport links in the region. Diplomats said the agreements have discussed at various senior levels and there had been no objection from any country and earlier no one had indicated that they needed approvals of their internal processes.
According to the declaration, SAARC countries also resolved to build an economic federation in 15 years. Pakistan reportedly decided to clear the energy pact, which facilitates trade of electricity among all SAARC nations
Agreements on motor vehicle movement and railway linkages are expected to be cleared within a time frame of three months, and they will be signed by Transport Ministers.
India had opposed Chinese observer Liu Zhenmin’s request for an “elevated” relationship with the SAARC, as a dialogue partner, calling for only “project-based” cooperation.
India spoke on terrorism threat
India has told that terrorism is big threat and challenge that is being faced in the region. India called for a "collective response" by SAARC to deal with the menace while pitching for 3Cs - Culture, Commerce and Connectivity - for deeper integration for peace and prosperity in South Asia.
India’s External Affairs Minister Sushma Swaraj strongly emphasised on improving road, rail, sea and air connectivity among the member countries to spur economic growth
Infra project funding facility: Modi
Seeking to strengthen economic ties within the SAARC region, Prime Minister Narendra Modi on 26th November proposed a special purpose facility to finance infrastructure projects and called for common standards to speed up trade activities.
Noting that SAARC nations have failed to move with the expected speed, he said, that less than five per cent of the region’s global trade takes place between SAARC nations. Even at this modest level, less than 10 per cent of the region’s internal trade takes place under SAARC Free Trade Area. Infrastructure is the region’s “greatest weakness and its most pressing need”, he said, adding it is harder to travel within the region than to Bangkok or Singapore.
According highest priority to infrastructure development, Modi said the proposed Special Purpose Facility would help in funding projects in the region. Touching upon ease of doing business in India, Modi underlined the need for extending the same to SAARC region.
The Prime Minister emphasised that nowhere in the world are collective efforts more urgent than in South Asia and “nowhere else is it so modest.” Even though Indian companies are investing billions abroad, Modi said that less than one per cent of it flows into the SAARC region.
To boost trade activities among member countries, Modi said India would now give business visa for 3-5 years for SAARC. Talking about various efforts and initiatives with SAARC countries, Modi said India would soon launch a new arrangement to meet Maldives’ need for oil.
India has given five South Asian partners duty free access to 99.7 per cent of their goods and prepared to do more with others, he added.
According to Modi, India’s vision for the SAARC region rests on five pillars — trade, investment, assistance, cooperation in every area, contacts between our people — through seamless connectivity.
- Pakistan on 26th November stalled the inking of SAARC connectivity agreements, including the motor vehicle pact, saying it was yet to complete its "internal process", notwithstanding other countries, including India and Sri Lanka, who have been strongly pitching for strengthening the people-to-people contact and movement of goods in the region.
- Top diplomats of the eight-member SAARC grouping in Kathmandu on 23rd November discussed cooperation on a range of issues like combating terrorism, poverty alleviation, energy security and climate change. The meeting elected Shanker Das Bairagi, Acting Foreign Secretary and the Leader of the Nepalese delegation, as the Chairman of the Committee. As terrorism in all its forms and manifestations has remained a formidable challenge for our region, coordinated and concerted efforts are required to tackle the situation, said Bairagi.
Agreements with Nepal
Prime Minister Narendra Modi on 25th November held talks with Nepalese counterpart Sushil Koirala on key strategic issues after which 10 agreements, including a pact on $1-billion assistance to Nepal, were inked.
A host of strategic issues, including defence and security, were discussed between Modi and Koirala. Later Modi inaugurated a trauma centre built by India at Kathmandu's Bir Hospital.
Following the talks, the two sides finalised terms of the $1-billion Indian assistance for Nepal's infrastructure development, announced by Modi during his August visit.
The agreement for Line of Credit to the neighbouring state was signed between Nepal finance ministry's Joint Secretary Madhu Kumar Marasini and Deputy Managing Director of Exim Bank David Rasquinha.
India and Nepal signed the Motor Vehicle Agreement under which permit would be given to vehicles to ply on designated routes in each other's country.
They also inked three twin-city pacts between Kathmandu-Varanasi, Janakpur-Ayodhya and Lumbini-Bodh Gaya. The 10 agreements also include, memoranda of understanding on training at Nepal Police Academy, tourism, traditional medicines and youth exchange.
A pact was also signed on a project development agreement over the 900 megawatt hydro-electric project on the Arun river in Nepal.
Also Modi announced that India has decided to allow Nepal nationals to carry Rs 500 and Rs 1,000 denomination notes up to the limit of Rs 25,000
India also gifted Nepal a mobile soil testing lab to boost soil health monitoring and adoption of best agricultural practices.
Kathmandu-Delhi bus service begins: Prime Minister Narendra Modi and his Nepalese counterpart Sushil Koirala on 25th November flagged off the first Kathmandu-Delhi bus service, called Pashupatinath Express, from Nepal. The bus will cover 1,250 km in 30 hours from Delhi. The fare is Rs 2,300 a passenger.
PM hands over HAL's Dhruv helicopter to Nepal: Prime Minister Narendra Modi on 25th November handed over an indigenous Advanced Light Helicopter (ALH) — Dhruv — built by the Hindustan Aeronautics Limited to the Prime Minister of Nepal Sushil Koirala at Kathmandu. The copter will be used by the Nepalese Army.
Dhruv helicopter in the Mark-III version with Shakti engines, glass cockpit and avionics would benefit Nepal, as it has a mountainous terrain and adverse environmental conditions.
The helicopter has aided in both military and civil operations. It is designed to meet the requirements of both military and civil operators. Dhruv has also been exported to Ecuador, Mauritius and Maldives. The Ecuador Air Force (FAE) operates five Dhruv helicopters with their president choosing to fly in one of them. Dhruv is, according to HAL, particularly useful in meeting the arduous tasks in difficult terrains.
Dhruv is a multi-role, multi-mission new generation helicopter in the 5.5 tonne weight class and meets the US’s Federal Aviation Authority specifications. It has demonstrated its capability in long distance flights, vertical climb and manoeuvring. Dhruv is an all-weather helicopter which can carry 10-16 people at heights of 10,000 feet.
The helicopter, which can cost anywhere between Rs 60-80 crore depending on the customisations, is presently exported to at least three other countries, including the Maldives and Ecuador.
Bilateral meetings with SAARC countries
Prime Minister Narendra Modi on 26th November held structured meetings with heads of Afghanistan, Bangladesh, Bhutan, Sri Lanka and Maldives and discussed various issues including satellite, solar energy, medical and terrorism too. A fairly extensive discussion between Indian and Bangladesh Prime Ministers was held to tackle the menace of terrorism.
Prime Minister has invited Bhutan Prime Minister Mr. Tshering Tobgay to attend Vibrant Gujarat coming January which has been accepted by Mr. Tobgay.
Calling for greater economic cooperation between the nations of the region he said that less than 10 percent region internal trade take place under SAARC Free Trade Area
OTHER IMPORTANT POINTS:
Leaders that attended the summit
- India- Narendra Modi (Prime Minister)
- Afghanistan- Ashraf Ghani (President)
- Bangladesh- Sheikh Hasina (Prime Minister)
- Maldives-Abdulla Yameen (President)
- Nepal- Sushil Koirala (Prime Minister)
- Pakistan- Nawaz Sharif (Prime Minister)
-The South Asian Association for Regional Cooperation was set up in 1985 with the belief that cooperative action among the member countries would usher in an era of shared prosperity. The nations are India, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan
-Economic integration between member countries is a prerequisite for a strong and vibrant Saarc. Not much headway has been made in intra-regional trade despite the South Asian Free Trade Agreement (Safta) and South Asian Preferential Trade Agreement (Sapta).
-Intra-regional trade hovers at around 4-6 per cent.
-India has the most sophisticated financial market in the Saarc region with world class regulation and effective compliance. The markets of other member countries are plagued by a multitude of problems, lack of liquidity being one of them. An integrated platform would enable investors to invest in their own domestic companies with less risk as the shares would be more liquid and the listed companies better regulated.
-India manages to attract significant foreign portfolio investments, but the accruing to India from the proposed platform would not be any less compared to other member countries.
-Other Saarc countries not only have a small financial market, they are poorly regulated as well.
-Combined clearing, settlement and risk management corporations can be promoted, with equity participation by member countries.
Published date : 01 Dec 2014 05:11PM
