On the Formation of an Investment Mechanism with India: Results of a Meeting at the FBA EAC Platform with the Participation of the EEC and JNK India
On March 5, Financial and Business Association of Euro-Asian Cooperation hosted a strategic dialogue between Indian businesses and key stakeholders in the oil and gas and industrial sectors of the Eurasian Economic Union (EAEU). The meeting, organized by Soltex Group, which has served as a business bridge between Russia and India for over a decade, featured JNK India Limited as a principal Indian partner. JNK India is a leading global manufacturer of equipment for oil refineries and process engineering.
The high level of representation underscored the significance of the event for industrial cooperation. Negotiations with JNK India Limited, led by Nitin Sud and Pankaj Gupta, were attended by Vitaly Vovk, Deputy Director of the EEC Department of Industrial Policy; Manish Kumar, Deputy Chairman of the FBA EAC Board; Alexey Kazartsev, Head of the FBA EAC International Banking Committee, Candidate of Technical Sciences, Member of the BRICS Business Council Financial Services Group; Sergey Korotkov, Advisor to the President of FBA EAC; Anton Vasilyev, General Director of SPARTA LLC, Member of the Expert Councils of the State Duma Committees; and Valerian Tochilo, Project Manager at Soltex Group.
Vitaly Vovk was instrumental in shaping the investment agenda, proposing a transition from one-time transactions to long-term investment projects utilizing corporate guarantees and rupee financing. A mechanism was developed where a Russian company could provide a corporate guarantee directly in India, such as for an amount equivalent to 100 million US dollars in rupees, as an alternative to standard bank guarantees. Under this arrangement, Indian partners are willing to provide up to 98% of the financing in rupees for industrial projects in Russia or within joint ventures. Soltex, with its extensive experience in India, facilitates the discounting of funds through accounts at Indian branches of Russian banks, with potential financial circuits offered by VTB (on favorable terms) and Sberbank (at interest rates of 5-6%).
JNK India specializes in the design and manufacture of process heaters, reformers, flare systems, and wastewater treatment equipment. The company collaborates with industry leaders such as UOP, Lummus, Technip, Haldor Topsoe, and EPC contractors Hyundai Engineering, SK E&C, and GS E&C. With a workforce exceeding 400 employees, JNK India's production facility in Pune is capable of manufacturing large-scale modules weighing up to 500 tons, as evidenced by projects for the Dangote Refinery in Nigeria and PEMEX in Mexico. The company's technology portfolio includes distillation, evaporation, heat transfer, process heaters, cracking furnaces, and reformers, with projects undertaken for Reliance Industries, BPCL, HPCL, and Assam Petrochemicals. In the realm of industrial ecology, JNK India offers membrane technologies for wastewater treatment, including Zero Liquid Discharge systems. The company's green technology portfolio includes the production of green hydrogen (in participation with India's National Hydrogen Mission), Sustainable Aviation Fuel, green chemistry, and carbon capture systems.
A dedicated segment of negotiations focused on the development of hydrogen infrastructure. The parties discussed the establishment of a network of hydrogen filling stations, encompassing both stationary combined and mobile complexes, including those intended for the agro-industrial sector. The development of hydrogen technologies was considered in conjunction with the existing infrastructure for gas-powered vehicles as a potential transition phase. The participants analyzed the current state of hydrogen production in Russia and the EAEU, which is currently in the early stages of development. The discussion thoroughly addressed the dichotomy between gray hydrogen produced from natural gas (Russia's competitive advantage due to its affordability) and green hydrogen derived from renewable energy sources (temporarily hindered by high costs, which has stalled active development). Simultaneously, the topic of biohydrogen and related areas was identified as cross-cutting and warranting inclusion in the final strategy.
The discussion also delved into the specifics of operating within the Union's markets. Kazakhstan demonstrated its openness to targeted and pragmatic projects, while Russia and Belarus emphasized innovative agreements where initial approval of technological solutions at the governmental or corporate level facilitated access to investments. In the context of continuous modernization of fixed assets, two models were identified: the rapid replacement of outdated lines to maintain production continuity and comprehensive innovation programs through approved agreements. A key requirement for partners was to transition from simple deliveries to a full-service company model capable of integrating technologies and providing services throughout the entire lifecycle of equipment. This approach should be articulated at the outset of negotiations.
The parties agreed to continue the dialogue and prepare a roadmap for the implementation of JNK India's technologies at Russian industrial facilities, utilizing the proposed investment mechanisms and business models. The details of the projects, including specific figures and specifications, will be finalized following preliminary agreements with partners, potentially involving investors from other countries.