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March 26, India and the United States began the formal negotiations to facilitate the Indo-US nuclear deal, with the department of atomic energy making it clear to the government that it could not accept a bilateal agreement. This bilateral agreement did not allow India to reprocess spent fuel, stockpile nuclear fuel and recognise its right to nuclear testing.

Still it is not clear whether the fairly detailed Indian draft submitted personally by foreign secretary Shivashankar Menon to the Bush administration in Washington has been taken on board by the US at the higher level, and is on the agenda for discussions now. The DAE is keeping what sources here describe as a hawk’s eye on the negotiations, with the nuclear establishment in no mood to allow any compromise on India’s security interests.

Dr.Anil Kakodkar chairman of the Atomic Energy Commission and secretary, DAE, has taken a no-non-sense position on the 123 agreement. He siad in a recent interview thar they did not want to convert this voluntary moratorium on nuclear tests into a bilateral agreement.

The moratorium on nuclear testing, he made clear, was unilateral and voluntary. The US is seeking to make this binding through the bilateral agreement. The nuclear scientists had earlier raised the issue of stockpiling fuel as well, maintaining that the March 2006 separation plan had clearly provided for building stockpiles of fuel to meet the lifetime requirements of nuclear reactors placed under IAEA safeguards.

Dr.Kakodkar said that they needed everything to be built into the 123 agreement in a very explicit manner, so that their interests were protected. Prime Minister Manmohan Singh had assured Parliament that all these concerns would be met through the 123 agreement.

Hinduja Group has announced its plans to invest over Rs.5500 crore in health care in India and property development business in UAE. It is also exploring to set up an automobile plant. Seperate agreements were signed by Hinduja Group with state-runs firms of UAE to pursue development of commercial properties and resorts in the Gulf nation.

It also plans to set up medi-cities, hospitals and day care centres in India. The project involves setting up of medicities in Delhi, Mumbai, Bangalore and Hyderabad with about 2000 beds in the first phase and would move to smaller cities and towns in the second phase.

Hinduja group has forged a 51:49 joint venture with Limities LLC, a sibsidiary of Dubai World, for the health care business, which would see an investment of $1 billion (nearly Rs 4,400 crore) in two to three years. The company could also look at applying for an SEZ status for these medi-cities.

Hinduja Group Chairman (India) Ashok P.Hinduja said that the investment would most probably come through the group’s listed entity in India. He said that the company had already bought land in the waterfront project of 1 Nakheel - a member of Dubai World, and investment and holding company of government of Dubai.

The agreement with Dubai World on real estate was linked by Gulf Oil Chairman Sanjay G Hinduja. R.Seshasayee, MD of the group’s flagship Ashok Leyland, also signed a MoU with Dubai World Chairman Sultan Ahmed Bin Sulayem to explore investment opportunities in Dubai’s auto sector. Ashok Hinduja said the details of the new manufacturing project were being worked out.

Lakshmi N.Mittal violates his agreement with Oil and Natural Gas Corp (ONGC) to pursue hydrocarbon opportunities exclusively with the flagship Indian firm. Lakshmi N.Mittal manages the world’s largest steel company.

An ONGC official was quoted as saying by a national news agency that though Lakshmi N.Mittal signed a joint venture agreement with the state-run firm to form ONGC-Mital Energy in June 2005, for acquisition of oil and gas fields, refinery business and LNG projects.

Mr.Mittal recently decided to go it alone in investing Rs.3,300 crore in the Bhatinda refinery. An official said that the July 24, 2005 agreement had remarked 27 countries for exclusive pursuit for hydrocarbon opportunities by OMEL. The official said that it clearly stated that Lakshmi N.Mittal shall offer ONGC Videsh a partnership in any venture it wishes to undertake in the hydrocarbon sphere. He added that Nigeria and Kazakhatan fall under the 27 exclusive countries marked for OMEL.

Clause 2.4 of the 2005 agreement reads that in the event Mr.Mittal or any of it affiliates was desirous of undertaking any venture or business opportunity in the hydrocarbons business in areas other than the Territories, Lakshmi N.Mittal should invite OVL, to the extent permissible and in the manner and with such information about such venture or business opportunity as it deems fit to participate in such venture or business opportunity together with Lakshmi N.Mittal.