India's power requirements currently outstrip available supply, senator says. U.s. Companies have off-the-shelf technologies that can provide assistance in India. Convene a meeting of the U.S.-India Strategic Dialogue soon and do it in Delhi.
Original Description:
Original Title
Sen Warner U S -India First 100 Days _ Actions Taken (2) (3)
India's power requirements currently outstrip available supply, senator says. U.s. Companies have off-the-shelf technologies that can provide assistance in India. Convene a meeting of the U.S.-India Strategic Dialogue soon and do it in Delhi.
India's power requirements currently outstrip available supply, senator says. U.s. Companies have off-the-shelf technologies that can provide assistance in India. Convene a meeting of the U.S.-India Strategic Dialogue soon and do it in Delhi.
Senator Warner First 100 Day U.S.-India Plan Actions Taken
India and the U.S. implement 7 out of 12 actions recommended by Senator Warner India and U.S joint issues. Announce a joint energy project: Indias power requirements currently outstrip available supply, and as the economy continues to grow, even more power will be required. As the Chief Minister of Gujarat, Mr. Modi oversaw the creation of over 900 MW of solar power capacity in the state, which is more than a third of the total solar capacity in the entire country. In recent years, wind power has also been on the rise in Gujarat. U.S. companies have off-the-shelf technologies that can provide assistance in India and create private sector jobs in the U.S. We already have a 2010 U.S.-India agreement in place to collaborate on energy technology, which provides a framework to launch new projects, and given Mr. Modis previous success, this would appear to be a great opportunity to work together. o The U.S. Trade and Development Agency, on July 31, announced an energy project with Gujarat Energy Transmission Corporation Limited (GETCO), to integrate increasing amounts of wind and solar into its power transmission system. The project, to be carried out with Quanta Technology of Raleigh, NC, will ensure load balance and frequency regulation. o India has dropped plans to impose an anti-dumping duty of between 11 to 81 cents per watt on solar panel imports from the US, China, Taiwan and Malaysia. Convene a meeting of the U.S.-India Strategic Dialogue (USISD) soon, and do it in Delhi: Typically held in June, the USISD would provide an early opportunity for the U.S. Government to engage with the new Government in India. Since the new Indian government will just be getting started, holding the Dialogue in Delhi will be less disruptive to organizing meetings and will provide both sides the opportunity to meet and get to work early in the term on joint initiatives. o Secretary of State John Kerry and Secretary of Commerce Penny Pritzker traveled to Delhi for the U.S.-India Strategic Dialogue July 31. Hold bilateral talks on Afghanistan: The U.S. could benefit from fully involving the new Indian Government in a post- Afghanistan security conference. The security landscape in Afghanistan is of concern to both countries. For India, the concern is that a U.S. withdrawal could leave a 2
challenging security situation nearby that could spill into India. The U.S. could seek Indias consultation on high-level strategies, and the governments could explore areas for collaboration. Propose the establishment of a public-private working group on infrastructure investment: Infrastructure in India presents a real opportunity. In Gujarat, Mr. Modi made infrastructure improvements a priority, building thousands of kilometers of highways and attracting investment to build up the country's largest modern port. For U.S. firms, a large part of the investment opportunities for the next five years are likely to be in infrastructure. Some American firms that have previously invested in India have experienced difficulties with payment certainty and are shy to take the risks of being primary developers. A public-private group could be charged with finding a way to ensure payment security for American investment, pointing toward specific projects where American firms can/should bid, and focusing U.S. Government assistance to help identify American firms to play a role in this infrastructure build- out. The Delhi-Mumbai corridor is taking shape, and it is worth asking the Government of India to consider dedicating several commercial centers for U.S. investment. o Through budget talks and during the U.S.-India Strategic Dialogue, there was discussion about designating infrastructure projects. The Indian budget, unveiled July 10, focused heavily on infrastructure, making specific mention of building smart cities and emphasizing expansion and improvement of roads, railways, ports, and energy infrastructure. Re-start negotiations to achieve a Bilateral Investment Treaty (BIT): India and the U.S. have meandered through several rounds of stop and start negotiations about how to proceed with a BIT. Announcing that both sides will sit down and negotiate a framework would boost confidence that a BIT is possible. A BIT would provide important protections for investors, help unleash needed investment, and provide a level playing field for both countries. Re-launch the Defense Policy Group: This high-level dialogue has fallen dormant for two years. It previously provided a regularly scheduled series of meetings to advance defense initiatives that were in each countrys mutual interest and provided a platform to discuss more difficult issues. The U.S., for its part must appoint a senior-level Pentagon official to lead the U.S. side of the Joint Defense Trade and Technology initiative. o Dr. Amy Searight, Deputy Assistant Secretary of Defense, announced in July that the Defense Policy Group will convene this year ahead of the 2015 3
renewal of the Framework for the U.S.-India Defense Relationship and other U.S.-India defense activities. U.S. Name a senior official for defense trade: The U.S. should name a senior-level official who reports directly to the Secretary of Defense to lead the Defense Trade and Technology Initiative (DTTI). Under Ash Carters leadership this was one of the most successful programs and helped shepherd billions of dollars of defense deals through the pipeline, as well as cleared out inefficiencies on both sides of the U.S.-India defense trade to make defense trade simpler, more responsive, and more effective. o May 31, Secretary of Defense Chuck Hagel announced that Frank Kendall, Under Secretary for Acquisition, Technology, and Logistics, would lead the U.S. side of DTTI. Review tourist visa policies and access to high-skill visas: The U.S. should conduct a review of visa policies with an eye toward further opening of global entry and trusted traveler programs for frequent travelers, including business leaders and investors. A review of policies for high-skill employees would help ensure companies in both countries have access to talent to help U.S. companies and the American economy grow and innovate and encourage more joint research and cooperation between universities. An agreement to increase travel and tourism between the two countries would increase more people to people interaction. o During the Strategic Dialogue Secretary of State John Kerry addressed the issue of high-skill visas, and acknowledged the need to reform U.S. immigration policies to make it easier for people to travel and address some of Indias concerns with regard to visa policies. India
Modify the defense offset regime: The Government of Indias Defense Procurement Procedures mandate that purchase of U.S. equipment require 30% of contract value be invested in Indian defense, civil aviation or homeland security industries. Much of the Indian offset market is saturated, and American defense firms increasingly find it difficult to locate areas to invest. It would be helpful to have a two-tiered system where offset funds that cannot be spent on traditional Indian defense industries could flow to a second tier of other Indian priorities such as education, skills development, or manufacturing. Agree to build community colleges in India: 4
In 2010, India signed multiple agreements to partner with U.S. community colleges and announced a plan to establish 100 schools to meet its goal of training 500 million Indians in basic skills over the next decade. However, the project became mired in the bureaucracy and was weighed down by its level of ambition. An agreement to construct just a few community colleges and then build upon that success could be more effective. Lift the Foreign Direct Investment (FDI) caps in one of the sectors under review: Lifting caps in some of the sectors that have been under discussion for years would be a positive signal to foreign firms that India was again open for business. Specifically, defense, insurance, railways, e-commerce and banking sectors are ripe for reform. o July 9, Indian Finance Minister Arun Jaitley unveiled a budget that raises FDI from 26% to 49% in the defense and insurance sectors. Implement new electronic distribution systems for subsidy payments: Originally proposed by Senator Warner to Finance Minister Pranab Mukherjee in 2012, an electronic debit card system to deliver benefits and subsidy payments to the rural poor would provide a much greater degree of accuracy and efficiency, and this technology could reduce the loss rate due to corruption and inefficiencies.