Russia may set up a free economic zone worth $3 billion in India intended to involve investors from third countries, the deputy chief of Russia's federal property agency said in an interview with the Russian government daily.
The interview was published on Friday, amid Prime Minister Vladimir Putin's visit to India, which is expected to see the signing of around 15 deals worth more than $10 billion.
A joint titanium enterprise, which is being created on account of India's debt to Russia, is planned to become the basis for the project, Russia's first initiative of such kind, Yury Medvedev told Rossiyskaya Gazeta.
He said the project would test a scheme that allows for the discharge of debts to Russia by countries through investments in their economies beneficial for Russia.
Russia, which holds a 51% stake in the Titanium Products Private Ltd., intends to invest some $120 million in the project, he said.
"A concept to create and develop the free economic zone was worked out in Russia and stipulates the involvement of nine more enterprises, which can work in cooperation with the joint enterprise," he said, adding the main problem for the Titanium Products Private Ltd. was to gain a prerogative right for the lease of land.
"In the future, it will be possible to assign the joint enterprise the operating right for the development of the zone," Medvedev added.
Russian and Indian investors, as well as those from third countries, are welcome to join the project in future, he said.
Medvedev said Russia was also planning to invest $676 million in the charter capital of the Sistema Shyam telecommunication company, a joint venture project between Russia's major industrial and financial group, Sistema, which holds a 74% stake, and India's Shyam Group.
MOSCOW, March 12 (RIA Novosti)
