By IOL South Asia Correspondent

NEW DELHI, June 4 (IslamOnline) - Recognizing the importance of the Central Asian region for its future needs of oil and natural gas, India is taking several major steps to ensure that it has more than cordial relations with the region. India has tried to promote good relations with the republics which emerged after the disintegration of the former USSR over a decade ago.

Prime Minister Atal Behari Vajpayee, currently in Almaty to attend the CICA summit, signed major deals with Kazakhastan on June 3 to acquire stakes in a string of proven oil and gas fields. Other sectors that could provide lucrative markets for Indian businesses are information technology, pharmaceuticals and small-scale industry.

According to the agreement, Indian oil giant ONGC Videsh will invest in Kurmangazai and Darkhan exploration blocks and would buy out the Alibekmola and Kozhasai fields when they are disinvested. Petroleum Ministry and ONGC officials are expected to work out the details soon, said Minister of State for External Affairs, Omar Abdullah who is accompanying Prime Minister Vajpayee on this visit.

Prime Minister Vajpayee, after signing three bilateral agreements with the Kazakh President Nursultan Nazerbayev, said, "India is prepared to make a major investment in the oil and gas sector in Kazakhstan, as we did last year in the Sakhalin oil field of Russia. We have agreed to promote joint ventures in IT. India will extend full support establishing a software technology park in Kazakhstan. We have also agreed to upgrade our cooperation in the pharmaceutical sector and in small-scale industries."

India has invested $1.1 billion in Russia’s Sakhlain region last year and indications show that New Delhi is prepared to invest a similar amount in Kazakhasthan as well.

Referring to the deal and discussions between the Indian Prime Minister and the Kazakh President, Omar Abdullah said that the ONGC would be keen on prospecting oil in Darkhan and Kurmangazi exploration blocks in the periphery of the Caspian Sea in Kazakhasthan. India would also bid for a presence in the Alibekmola and Kozhasai natural gas fields.

The Caspian region has an estimated reserve of 230 billion barrels, which constitute one third of the total deposits in the Gulf area. According to official sources, India decided that it can no longer delay entering the region’s energy sector if it wishes to acquire a prominent place.

Other international players include some of the leading oil companies investing heavily in the oil exploration in the region. India has signed deals in other sectors too.

There is a growing realisation in Kazakhstan that it is dependent on imports for all manufactured goods. Even before the oil economy has taken off, there is a fear that hydrocarbons might disappear soon and that the country should not pursue the Gulf oil economy model.

"Agro and food processing industries have been identified as potential sectors for immediate investment. The local processing and manufacturing industries are in a shambles and multinational brands lord over a country that has hardly any consumer brands of its own," said Omar Abdullah. It is in this context that a mutual understanding for economic cooperation in IT and pharmaceutical has been achieved at the highest level between India and Kazakhstan.

President Nazerbayev visited Bangalore last February showing keen interest in Indian IT investments. This has resulted in the Indian initiative in setting up a software technology park. India and Kazakhstan have also set up a joint working group (JWG) to combat terrorism.

Prime Minister Vajpayee, who held wide-ranging talks with Nazarbaev at the President's palace, said that the Kazakh leader "fully understood" India's concerns and the tensions in South Asia created by what India terms as "cross-border terrorism."

"We have the same perspective on firmly countering international terrorism. We have agreed to set up a JWG for cooperation against terrorism," Vajpayee said after the meeting.