India, Azerbaijan plan dry run on North-South transport corridor for March

India will conduct a dry run study in March 2014 on International North-South Transport Corridor (INSTC) through Nhava Sheva (Mumbai)- Bandar Abbas (Iran)- Tehran-Bandar Anzali (Iran)-Astrakhan(Russia). The announcement was made in a protocol signed after the third meeting of the Inter Governmental Commission on Trade and Economic, Science and Technology Cooperation between India and Azerbaijan.

''The two countries have the requisite momentum to take the relationship to next level. Completion of the corridor will lead to mutually beneficial connectivity between the two regions,'' said EMS Natchiappan, minister of state for commerce and industry and Huseyngulu Baghirov, minister of ecology and natural resources of Azerbaijan, in New Delhi on Tuesday.

Meanwhile, Iran and Azerbaijan had, at a meeting in November 2013, decided to conduct technical and financial feasibility study for the construction of Gazvin-Rasht-Astara (Iran)-Astara (Azerbaijan) railway route for connecting the railway lines of International North-South Transport Corridor.

This rail link is crucial for the success of the new North-South transport corridor and the issue will be taken up at the next meeting of the INSTC coordination council.

India and Azerbaijan also took up the issue of cooperation in the hydrocarbon front. Azerbaijan government has been supportive of ONGC Videsh Limited's acquisition of participating interest in the upstream and midstream oil and gas assets - the Azerbaijani Chirag Guneshli contract area and in Baku-Tbilisi-Ceyhan  pipeline - owned by Hess Corporation's wholly owned subsidiaries

Both the sides expressed satisfaction at the present level of bilateral engagement in the hydrocarbon sector. India and Azerbaijan also proposed to constitute a joint working group in the field of hydrocarbon.

India's state-owned National Hydroelectric Power Corporation Limited (NHPC) also expressed interest in the development of hydro power plant in Azerbaijan as part of an agreement to explore opportunities for participation in renewable energy sector, energy efficiency and various upcoming projects in oil and gas, petro-chemicals, pipelines etc in Azerbaijan and India or third countries in collaboration or as joint venture.

India also called for investment in the field of hotel industry tourism and infrastructural development as India allows 100 per cent foreign direct investment (FDI) in hospitality sector on automated basis.

Azerbaijan also assured India on easing access for Indian Pharma products in its market. Towards this, Azerbaijan's ministry of health will look into the matter regarding registration and re-registration of Indian pharma products.

Both sides saw great potential for trade cooperation in sectors such as investment, transport, energy, fertilizers, financial services, aviation, tourism, culture, pharmaceuticals, health, agriculture and animal products, information and communication technology, chemicals, science, education, visa and consular matters etc.

''Apart from the traditional areas of cooperation between the two countries, there is a need to diversify the trade basket to include more commodities and services'', said Natchiappan.

Total trade between India and Azerbaijan rose from $565.98 million in 2011-12 to $608.55 million in 2012-13.