India, Libya to boost bilateral trade

By siliconindia   |   Wednesday, 09 October 2002, 19:30 IST
Printer Print Email Email
NEW DELHI: After a seven-year gap, India and Libya held talks here Wednesday to remove impediments to forging better economic ties. Since 1995-96, trade and investment relations between the two have slid, Saad Mustafa Mujber, assistant secretary for cooperation affairs and leader of the Indo-Libyan Joint Commission, told a two-day Indo-Libya Joint Commission meet. "We are trying to make up for the seven-year gap. It is incumbent on both the countries to make up for the lost opportunities," he said. Saying "politically our relations are unique (but) our economic cooperation is below expectation," Mujber urged India to invest in infrastructure, hydrocarbon, power, railways, ports and other areas. "Recognising the high potential in hydrocarbons and power sector, separate working groups have been established to identify projects and areas for possible cooperation," said Indian Minister of State for Commerce Raman Singh. In August, India's exploration major, Oil and Natural Gas Corporation (ONGC), through its overseas arm ONGC Videsh, signed an agreement with the Turkish Petroleum Overseas Company to buy 49 percent stake in two on-land oil and gas exploration blocks in Libya. One of the blocks, in the Sirte basin, measures about 1,200 sq km while the second in Ghadames basin is spread over 6,600 sq km. ONGC Videsh awaits formal approval of the Libyan government to the deal. The joint commission meeting is expected to finalise agreements on Bilateral Investment Protection and Promotion (BIPA), a cooperation pact on cultural, executive and educational exchange programmes. India is also studying Libya's proposal to link Delhi and Tripoli by direct flights. "It would depend on the economic feasibility of the operation," Singh told IANS. With Libya, Indian would take up the $38 million owed to 10 companies since 1984. "The issue of repatriation of savings of the Indians working there, taxation of company earnings on the basis of gross turnover, and lifting of the ban on import of Indian tea and rice are other issues we would take up with the Libyan government," a commerce ministry official said. Since Libya does not allow foreign residents to repatriate more than 50 percent of their earnings, the number of Indians working there has come down. On the import of tea and rice, India has urged Libya not to penalise the whole exporter community for substandard product provided by one or two companies. "On the political level we want to boost economic cooperation with Libya which could encourage Indian companies to take up infrastructure projects in rail, roads and construction," said Singh.