Russia to start 'restructuring' rupee-fund from April: Gref

Moscow, Feb 14 (UNI) Russian Economic Development and Trade Minister German Gref today said India's rupee debt to Russia will be restructured beginning April 15 and invested in Russian projects in India.

The two sides reached the agreement during his recent visit to New Delhi where he participated in the bilateral trade and investment forum, Mr Gref told RIA Novosti news agency.

He said the 1 billion dollars debt, representing one-third of India's 3 billion dollars debt to Russia, will cease to be considered as a debt obligation and repaid as of April 15, 2007, and will be invested in joint Russian-Indian projects.

Mr Gref pointed out that India and Russia have, so far, selected the 126 million dollars project to build a titanium dioxide plant in Orissa, for investment.

During the visit of President Vladimir Putin to India last month, Russia's state-run Vnesheconombank (VEB) signed a three-party agreement with Russian company Tekhnokhim Holding and India's Saraf Agencies Private Ltd on setting up the titanium plant.

He said the decision to finance the development of a multi-purpose military transport aircraft (MTA) using the debt fund had not yet been made.

He added the Russian government was prepared to consider other applications from Russian companies to establish joint ventures in India using the debt fund, stressing the applications will qualify if the term of investment was at least five years.

UNI