India and Kazakhstan made for each other, says PM Narendra Modi

ASTANA (KAZAKHSTAN): India and Kazakhstan on Tuesday marked a new chapter in their bilateral relations with the commencement of drilling at this country's Satpayev exploration block, where ONGC Videsh has a significant stake.

The drilling was inaugurated through videoconferencing in the presence of Prime Minister Narendra Modi and his Kazakh counterpart, Karim Massimov, at a business forum here on Tuesday night. Five agreements to boost business were also signed.

ONGC Videsh is expected to invest $400 million to support exploration in the Satpayev block in Kazakhstan's oil-rich North Caspian region. The company, which has a 25% stake in the block, will fund the entire exploration activities. It has already invested $150 million and will also pay $80 million to its Kazakh counterpart, KazMunayGas, as a one-time assignment fee. Exploratory drilling is expected to begin next month. Kazakhstan is keen that India join other oil projects as well in the region.

Addressing the forum that was attended by business honchos from both India as well as Kazakhstan, Modi called for stepping up economic engagement between the two nations.

The Prime Minister called for enhanced investment from Kazakh companies in India, particularly in the areas of renewable energy, smart cities, housing and railways. He said Kazakhstan could benefit from partnerships with Indian companies, which will bring in modern technology, engineering skills and cost-effective mechanisms. He said Kazakhstan could also benefit from India's strength in the information technology sector.

Noting that Kazakhstan has been blessed with vast natural resources, the Prime Minister said India has huge demand for these resources, and therefore, both countries have a great potential for partnership. "Minerals and market. We are made for each other," he said.

A high-powered delegation, comprising top executives from Indian companies such as Essar, GMR, BHEL, Punjab National Bank, Lupin, Punj Llyod and Sun Group as well as Nasscom was present at the forum. The ArcelorMittal group, which has investments in Kazakhstan, was also represented.

India's trade with Kazakhstan stands at just a little over $950 million: India's exports are worth $250 million and imports about $700 million. Both countries are hoping to increase the trade.