Comment & Briefs

The TATA investment of US$3 billion in Bangladesh, by far the largest foreign investment in the country, has run into rough weather over the pricing of gas. Dhaka rejected Tata's initial 2004 offer of $1.10 per unit of gas to be supplied over a twenty-year period, seemingly favouring the price to be at par with international prices. As per the new proposal submitted in April 2006, the price that Tata has offered is $3.10 for thousand cubic feet (MCF) of gas for its fertiliser plant and $2.60 per MCF for its proposed steel plant.

Indonesia and Australia have been at diplomatic loggerheads on the issue of granting political asylum to 42 Papuan refugees who sailed into Australia's Cape York Peninsula in January 2006. While Australia has granted them temporary visas, Indonesia has been asking for their repatriation. Papua has been projected as the next East Timor by Australia and this has become an issue for the Indonesian authorities as Papua has rich mineral resources and Indonesia would not like to have Papua go the East Timor way.

During his four-day visit to the United States from April 18 to 21, 2006, President of the People's Republic of China (PRC) Hu Jintao attended a dinner hosted by Microsoft founder Bill Gates, visited the Boeing plant at Seattle, met President George W. Bush at the White House, attended a dinner hosted by US business firms like Wal-Mart, General Motors, Citigroup and Walt Disney and addressed the Yale University in New Haven.

Assam, a strategic border state of India, witnessed the influx of migrants since the British period from then East Bengal, now Bangladesh. The influx was largely engineered by the British, given the economic rationale of cheap labour that the migrants provided for the sprawling tea estates in Assam. However, this issue of migration assumed political and communal overtones after independence, and continues to be an issue of concern.

The killing of Kasula Suryanarayana, an Indian telecommunications engineer working for a Bahrain based firm in the Zabul Province of Afghanistan raises important questions on the emerging challenges to India's efforts at reconstruction and stabilization of a "nascent democracy". Suryanarayana was reportedly abducted by the Taliban on April 28 and his abductors linked his safe release to the withdrawal of all Indians working in Afghanistan.

Russia is on the move to become an energy superpower by spreading its influence deep into Western and Eastern energy markets. Possessing the largest reserve of natural gas in the world, Russia's domestic and foreign policies have now come to be largely determined by the energy factor. Apart from the already existing market in the West, Moscow's plan to explore Asian markets was welcomed by the major energy consuming countries such as China, Japan, and the Koreas in the East Asian region.

Nepal is witnessing relative political calm after the Maoists declared a three month ceasefire to facilitate a political solution to the insurgency, which has been marked by unabated violence, threatening peace and stability in the Himalayan Kingdom. The Maoist insurgency, which originated ten years ago in April 1996, has reached a new phase. After several rounds of unsuccessful negotiations to resolve the political crisis posed by the Maoists in the past, the current situation is characterized by anxiety and hope. The anxiety is over whether a peaceful solution can be reached.

Despite the King's proclamation and the subsequent end to the 19-day anti-Monarchy protests by the seven party alliance (SPA) on April 25, 2006, Nepal is still not sure of peace and stability. The difference between the SPA and the Maoists on the new constitution seems to be the biggest challenge before the Koirala Government. Although the Maoists have declared a three-month ceasefire, they have refused to surrender their weapons before or during the elections to a Constituent Assembly.

The fast breeding domestic debate on the size of the nuclear deterrent is taking place in the light of India's separation plan of nuclear facilities for civilian and military purposes. The scope of the debate related to India's credible minimum deterrence is complex with reference to the continuing relevance of the role of nuclear weapons in military strategies worldwide both at the conceptual and operational levels.

Indian Prime Minister Manmohan Singh concluded his two-day state visit to Uzbekistan on April 26, 2006. This was the second visit by an Indian Prime Minister to Tashkent since Uzbekistan's independence in August 1991. India and Uzbekistan signed seven agreements in the fields of energy, business, education, mineral prospecting and stepping up the joint fight against international terrorism, religious extremism and drug trafficking. This has undoubtedly increased Indian stakes in Central Asia.