India and Bhutan signed MoU to develop Nalanda University

India and Bhutan on 7 November 2014 signed a Memorandum of Understanding (MoU) to develop Nalanda University in Bihar as an international centre of excellence.

Highlights of the agreement
The MoU states that the objectives and functions of Nalanda University includes the establishment of an international institution of learning that will bring together the brightest and the most dedicated students from all countries irrespective of gender, caste, creed, disability, ethnicity or socioeconomic background.

According to the MoU, the Nalanda University will be located at Rajgir in Bihar and will have the power to confer degrees, diplomas and certificates.

It focuses on building an Asian community of learning where the intellectual potential of every student can be developed to the fullest extent possible.

As per the MoU, India will provide appropriate visa to students, faculty and staff for travelling to India to study or work in the University. The funding for the establishment and operations of the University will be on a voluntary basis.

India and China signed three MoUs for cooperation

The President of China, Xi Jinping arrived in India at Ahmedabad, Gujarat on 17 September 2014. He is on a three-day official visit to India. On the very first day of his visit, he signed three Memorandum of Understanding (MoU) with India.

Three Memoranda of Understanding (MoUs) are

• MoU to establish Sister Province relations between Guangdong, China and Gujarat, India: It covers cooperation in economy and trade, environmental protection, public policy education, health, science and technology, tourism and culture.

• MoU between the cities of Guangzhou, China and Ahmedabad, Gujarat, India: It is signed for closer cooperation between the local authorities of the two cities, which will facilitate engagements in the fields of economy and trade, environment protection, public policy, education, health, science and technology, tourism and culture. Knowledge sharing will be done through delegation visits, institutional meetings and sharing of experiences in areas of mutual interest.

• MoU signed between Industrial Extension Bureau (iNDEXTb) and China Development Bank: Under the MoU, iNDEXTb will assist Chinese investors in obtaining required clearances and creating infrastructure facilities in the industrial parks. The iNDEXTb is a nodal agency of Government of Gujarat for investment promotion.

India and Germany agreed to cooperate in skill development and solid waste management

India and Germany on 8 September 2014 agreed to cooperate and prepare a roadmap in skill development, solid waste management and cleaning of rivers. 

This was agreed during the meeting between Prime Minister Narendra Modi and visiting German Foreign Minister Frank-Walter Steinmeier in New Delhi.

It was also agreed that India and Germany will undertake preparations with the aim of finalizing concrete roadmap for cooperation in each of these areas at the next Inter-Governmental Consultations meeting in 2015. 

During the meeting, PM Narendra Modi also suggested that India should use the expertise of Germans in the area of skill development. In this regard, he suggested that both sides could develop a concrete time-bound plan for training of Indian youth to meet Indian needs and the global requirement of skilled human resources.

The agreement to cooperate is a part of Germany’s desire to expand and strengthen bilateral relations with India. 

Besides, the move to take Germany's help in skill development, waste management and river cleaning assumes significance as Modi has enlisted cleanliness as his priority agenda.

India and Latvia signed agreement on Double Tax Avoidance Agreement

The Government of India on 18 September 2013 signed an agreement with Latvia on Double Tax Avoidance Agreement (DTAA) and the Prevention of Fiscal Evasion with respect to Taxes on Income.

The Agreement and the Agreed Note were signed by Salman Khurshid, External Affairs Minister of India and Mr. Edgars Rinkevics, Minister of Foreign Affairs of Latvia.

Latvia is the third Baltic country with which DTAA has been signed by India. Earlier DTAAs were signed with Lithuania and Estonia.
 
The DTAA provides that business profits will be taxable in the source if the activities of an enterprise constitute a permanent establishment (PE) in the source state. The Agreement provides for fixed place of permanent establishment (PE), building site, construction or assembly PE, service PE, Off-shore exploration/exploitation PE and agency PE.

India Signed Loan Agreement with World Bank for National AIDS Control Project-IV

India signed an agreement for loan of 255 million US dollars with World Bank for the National AIDS Control Project (NACP-IV) in New Delhi on 18 June 2013. The Objective of the project is to increase safe behaviors among high risk groups in order to contribute to India’s national goal of reversal of the HIV epidemic by 2017. 

Project Component: The Project has three components that include implementation at the national, State and district levels: 

(i) Scaling-up Targeted Prevention Interventions; 
(ii) Behavior Change Communications; and 
(iii) Institutional Strengthening.

The closing date of NACP IV is 30 September 2017.

Agreement (DTAA) and Protocol Signed Between India and Malta

The Double Taxation Avoidance Agreement (DTAA) and the Protocol between the Republic of India and Malta for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income is in force since 8th February, 1995. Both India and Malta have renegotiated the Agreement to bring in line with international standards, change in domestic laws and changed economic scenario. 

On 08th April, 2013, India and Malta had signed the new DTAA at Valetta, Malta. The Double Taxation Avoidance Agreement (DTAA) was signed by the Smt. Preneet Kaur, Minister of State for External Affairs of India and Dr. George Vella, Foreign Minister of Malta. Once the DTAA enters into force, it will stimulate the flow of capital, technology and personnel between both the countries and will further strengthen the economic relationship. It also provides tax stability and reduces any obstacles in providing mutual cooperation between India and Malta. 

India and Finland to Explore Solar Energy Applications for Oil and Gas Projects

A fourteen member Delegation from Finland led by Marja Rislakki, State Secretary Ministry of Employment & Economy of Finland met with an Indian delegation led by Lakshmi Panabaka, Minister of State, MoPNG Government of India on 15 April 2013. 

The delegation from both countries during their meet identified several ideas of collaboration in sustainable development between the two countries for mutual benefits in the Oil and Gas Sector. 

Some of the basic areas identified include
•  Projects on Solar Energy applications for Oil & Gas Projects
•  Projects on Solar Energy applications for Biofuels & Algae based biofuels research and water and waste water management
•  Carbon capture & reformation
•  Finland`s Green Growth & Groove programme for suitable application to Indian Scenario and Academic Institutions/Universities for collaborative R&D projects in areas of low carbon growth technologies and sustainable development.

Following the conclusions reached after the meet of the delegations it’s likely that a Memorandum of Understanding can be taken up between the Governments of the two countries in the near future. The collaboration between the two MoPNG and Finland Government can be in the areas of sustainable development for mutual benefits in accordance to the agreement, respective laws and regulation of the two nations.

MoU for Cooperation in the Field of Higher Education Signed Between India and Germany

Two MoUs were signed between India and Germany yesterday - a Memorandum of Understanding (MoU) for cooperation in the field of Higher Education and a Joint Declaration of Intent (JDI) regarding Promotion of German as a Foreign Language in India. The MoUs were signed by the Human Resource Development Minister, Dr. M.M. Pallam Raju at the 2nd Inter Governmantal Consultations held at Berlin. The HRM is accompanying the Prime Minister Dr. Manmohan Singh during his visit to Germany. The Chancellor of Germany, Prof. Dr. Ms. Johanna Wanka, Federal Minister for Education and Research of Germany was also present on the occasion. The MoU for cooperation in Higher Education envisages devising mechanisms of co-operation and sets the agenda for improving educational relations between the two countries. The MoU chiefly supports a new jointly funded programme entitled “Indo-German Strategic Partnerships in Higher Education (IGSP)” to intensify institutional linkages and to open up new and innovative areas of cooperation. India and Germany have committed to earmark 3.5 million Euros from each side for an initial period of four years (2013-2016) to support programmes under IGSP. Federal Minister of Germany Dr. Wanka expressed hope that the hoped that the two MoUs signed will further strengthen the collaborative efforts. Both leaders noted that German language is highly sought after in India and therefore the need to provide quality teaching staff in schools as well as Universities to impart language training will be felt more in the coming years. During the Inter Governmental Consultations, Dr. PallamRaju also laid emphasis on the following areas: Max Planck Institute Partnerships for encouraging basic research in Indian Institutes of Science Education and Research(IISERs); Fraunhoffer Model of collaboration between industry and academia(applied research) for IITs and NITs and TU9 universities from the German side; Research in Social sciences and Humanities in which Indian Council of Social Science Research (ICSSR) will be a major partner from the Indian side; and use of ICT in intercultural exchanges particularly comparative linguistics of Sanskrit and German languages.

Indo-Russian Co-Operation Agreement Signed

The Government of India and Government of Russian Federation have signed on April 10, 2013 in Moscow a Regulation defining the structure, functions and procedure of the Joint Commission which has been established by an Agreement signed on December 21, 2010 in New Delhi in the field of Emergency Management. 

Shri Sushilkumar Shinde, Union Minister of Home Affairs and Mr.Vladimir Puchkov, Minister of the Russian Federation for Civil Defense, Emergencies and Elimination of Consequences of Natural Disasters have singed this agreement. 

The agreement will enable both the countries to help each other in the field of prevention and elimination of the consequences of emergency situations. It will further strengthen the bond of friendship between the two countries and enhance the Indo-Russian Co-operation. 

The Indo-Russian Commission will ensure the implementation of the Agreement which was signed on December 21, 2010 in New Delhi for catalyzing cooperation in the field of Emergency Management and contribute to the well being and safety of the people of both the countries in the event of disasters and also to exchange mutually beneficial scientific and technical information in the area of Emergency Management. The meetings of the Joint Commission will be alternatively held in India and Russia. 

ndia, Portugal ink Social Security pact

India and Portugal inked a Social Security Agreement (SSA). About 75,000 Indians are living in Portugal, most of them are working as professionals and self-employed. The bilateral Social Security Agreement is significant requirement from the futuristic point of view to take advantage of the emerging employment opportunities and to further strengthen the trade and investment between the two countries.

Benefits that will come from this Social Security Agreement:

• For short term contract upto 5 year, no social security contribution would need to be paid under the Portuguese law by the detached workers provided they continue to make social security payment in India.
• The above benefits shall be available even when the Indian company sends its employees to Republic of Portugal from a third country.
• Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Republic of Portugal.
• The self-employed Indians in Republic of Portugal would also be entitled to export of social security benefit on their relocation to India.
• The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility for social security benefits.

What is Social Security contribution:
Social Security contribution is similar to India’s Employees Provident Fund (EPF). As per Indian Labor Law, it is mandatory for every employer and employee who falls under the ambit of Employees Provident Fund Act 1952 to make contribution towards the provident fund. Similarly, Portugal has a mandatory contribution fund known as Social Security. In the absence of this pact, the Indian workers in foreign nations paid social security tax in the countries of their stay although they contributed there part in India.

Countries with which India has signed SSA:
There are 17 nations:
Belgium, Germany (Social Insurance), Switzerland, France, Luxemburg, The Netherlands, Hungary, Denmark, The Czech Republic, Republic of Korea, Norway, Germany (Comprehensive SSA), Finland, Canada, Japan, Sweden and Austria.

Protocol for Amending DTAA signed between India and Sweden

India and Sweden have signed protocol amending the avoidance of double taxation pact.

The convention and protocol between India and Sweden for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (DTAC) was first signed on June 24, 1997.  In April 2011, both India and Sweden concluded a protocol to amend the Article 27 of the DTAC concerning exchange of Information to bring it in line with the international standards and to add an article in the protocol to the DTAC to include tax examination abroad. 

The protocol was signed by Indian Ambassador to Sweden Banashri Bose Harrison and Anders Borg, Ministry of Finance, Sweden.

The protocol will replace the article concerning exchange of information in the existing DTAC between India and Sweden and will allow exchange of banking information as well as information without domestic interest. It will, now, allow use of information for non-tax purpose if allowed under the domestic laws of both the countries, after the approval of the supplying state.

The article added in the protocol to the DTAC will enable both the countries to assist in conducting tax examination abroad by allowing officials of one country to enter the territory of other country for this purpose.

Ministry of Steel Initiative to Strengthen Cooperation in Steel & Mining with Brazil

The Ministry of Steel recently led a delegation to Brazil to strengthen cooperation between the two nations in steel & mining. During the visit, a Letter of Intent (LoI) was signed by the Secretary, Ministry of Steel on behalf of Government of India and by the Executive Secretary (Mines & Energy) on behalf of the Government of Brazil. The LoI inter-alia aims to promote and expand bilateral relations between the two countries in the mineral sector with focus on strengthening the supply chain for the growth of the steel industry in both the countries.  The Letter of Intent aims to encourage investment opportunities in iron & steel related businesses by the Indian and the Brazilian companies in India and Brazil, facilitate exchange of technical know-how in developing the iron and steel production and other steel related raw materials, including pelletisation plants and other associated industries. Both the Governments would jointly work for developing the steel industry and to exchange technically qualified manpower for sustainable growth of the iron & steel industry. The possibility of signing a Memorandum of Understanding during the forthcoming visit of the President of Brazil to India is also being explored. Both India and Brazil have been showing robust growth in the consumption of steel and are globally viewed as the two large emerging markets after China in terms of their growth potential.

India, Gibraltar ink TIEA pact

ndia and Gibraltar have inked a Tax Information Exchange Agreement (TIEA) that among other things calls for transparent sharing of information.
This is the 13^th TIEA being signed by India.
Countries with whom India has signed TIEA pact are Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Macau, Liberia, Argentina, Guernsey, Bahrain and Monaco.

About TIEA:
It is a pact which allows the signatories to share tax related information based on international standard of transparency and exchange of information.

Position of Gibraltar:

As per this agreement:

• Information must be foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by the agreement.
• It allows for tax examination abroad and has specific provisions for providing banking and ownership information.
• The requesting state has to provide some minimum details about the information requested in order to justify the foreseeably relevance criteria.
• Information under this is to be treated confidential and disclosed to only specified person or authorities, which are tax authorities or the authorities concerned with the determination of tax appeal.
• Information can be used for non tax purposes with the written consent of the Competent Authority of the requested Party.
• Requested Party shall provide upon request the information even though that Party may not need such information for its own tax purposes.
• Exchange of past information in criminal matters is also feasible through this pact.

India, Austria ink social security pact

Indian professionals working in Austria will soon be exempted from paying social security contribution there, if they make such payments inIndia.

As per the pact, Indian workers will be entitled to “export” of their social security benefits if they relocate to India after completion of their service inAustria.

Self- employed Indians will also be entitled to export of the benefits on their relocation to India.

It will also provide cooperation in the area of labour market expansion wherein over 17,000 Indian professionals are working at present.

The agreement was signed by Overseas Indian Affairs Minister Vayalar Ravi and Austria’s Minister for Labour and Social Security Rudolf Hundstorfer in Vienna on Monday.

Under the agreement, Indian workers on short-term contracts of up to five years will not be required to make any social security contribution in Austria, provided they continue to make social security payments in India.

The relief will be available to Indians even if an Indian company sends its employees to Austria from a third country.

Officials in Vienna said similar relaxation will be provided to Austrian citizens working in India.

According to Indian labour laws, all employees and employers falling under the purview of the Employees Provident Fund Act, 1952, are required to make mandatory contribution towards provident fund.

"There is a huge potential for Indian workers to take employment in Austria as there is a huge labour supply gap in the country,” officials in Vienna said on Monday.

India has already signed similar agreements with Belgium,Germany, France, Switzerland, The Netherlands, Luxembourg,Hungary, Denmark, Czech Republic, South Korea, Norway,Finland, Canada and Japan.

India, Gibraltar sign tax information exchange agreement

India and Gibraltar have signed a Tax Information Exchange Agreement (TIEA) that among other things calls for transparent sharing of information.

The agreement was signed yesterday by Jaimini Bhagwati, High Commissioner of India to the UK from the Indian side and Gilbert Licudi QC, Minister with the responsibility of Financial Services, Gibraltar on behalf of Gibraltar.

This is the 13th TIEA being signed by India.

So far India has signed TIEAs with the Bahamas, Bermuda, the British Virgin Islands, the Isle of Man, the Cayman Islands, Jersey, Macau, Liberia, Argentina, Guernsey, Bahrain and Monaco.

According to the agreement, based on the international standard of transparency and exchange of information, information must be foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by the agreement.

It also provides for tax examination abroad and has specific provisions for providing banking and ownership information.

The salient features of the agreement also say that the requesting state has to provide some minimum details about the information requested in order to justify the foreseeably relevance criteria.

Information is to be treated as secret and can be disclosed only to specified person or authorities, which are tax authorities or the authorities concerned with the determination of tax appeal, it says.

It also provides for use of information for non-tax purposes with the written consent of the competent authority of the requested party.

There is a specific provision that the requested party shall provide upon request the information even though that party may not need such information for its own tax purposes.

The agreement also provides for exchange of past information in criminal matters.

India and Australia agreed to Concentrate on Energy and Food Security

India and Australia on 28 January 2013 agreed to concentrate on priority areas like energy and food security for mutual benefit of the two countries. At the 14th Session of the India - Australia Joint Ministerial Commission held in New Delhi, the two sides underlined the importance of a solid institutional framework to facilitate future growth in bilateral trade and investment. The Commission was co-chaired by Minister of Commerce, Industry and Textiles Anand Sharma and his Australian counterpart, Craig Emerson.  India and Australia welcomed the positive momentum in the India-Australia relationship, based on shared values, converging interests and growth in economic links. The successful state visit to India by Australian Prime Minister Julia Gillard in October 2012 underlined both countries deep commitment to advance the Strategic Partnership agreed in November 2009. The Minister for External Affairs, Salman Khurshid, and the Minister for Foreign Affairs, Senator Bob Carr, held the 8th Foreign Ministers’ Framework Dialogue on the 21 January 2013, to review the bilateral relations and build on the momentum achieved by Prime Minister Gillard’s visit. The two countries also met at Ministerial level to advance Agriculture, Energy, Education and Science & Technology links.

India, U.S. collaborate on solar energy

India and the United States have started an initiative to develop solar energy through photovoltaic (PV) projects and concentrated solar power (CSP), also known as solar thermal.

This comes four months after India experienced one of the world’s biggest blackouts, which affected more than 680 million people.

Titled ‘SERIIUS’ (Solar Energy Research Initiative of India and the United States), the $50 million project would be conducted by the Bangalore-based Indian Institute of Science and the Washington-based National Renewable Energy Laboratory.

Thamanti Dam

Government of India and Government of Myanmar signed an Agreement in 2008 for development of Chindwin River Valley. Based on this Agreement, NHPC was asked to undertake additional investigations and prepare the Detailed Project Report (DPR) on the Thamanti Hydro-Electric Power Project (HEP). NHPC has completed the DPR on Thamanti in October, 2011.

Thamanti HEP is estimated to generate a total of 1200 Megawatts (MW) of electricity. As per DPR, approximately 41092 persons of 7411 households would be affected due to the construction of proposed Thamanti Project. Total area under submergence is estimated to be about 1374 sq.km. Reservoir area would cover from Tazon village to Hkanti. Most of the areas under submergence is forest land. The Social and Environmental Impact Assessment studies are included in the DPR of Thamanti Hydro-Electric Power Project.