New Delhi: India and Russia on February 7 signed a wide ranging trade and economic protocol providing for joint development of a 100-seater multi-purpose transport aircraft, boosting co-operation in oil exploration and unveiled new measures to reverse the declining trade.

The aircraft, to be produced and marketed jointly, is likely to be based on the Russian IL-214 design and will be developed in its various versions, military transport, passenger and cargo.

Announcing this decision Russian Deputy Prime Minister Ilya Klebanov told reporters that feasibility studies have already been carried out and Moscow and New Delhi had earmarked development of main and subsidiary systems like air frame, engines and other components between them.

During the extensive meeting, the two sides came to an agreement to sort out the vexed issue of debt repayment, utilise large rupee holdings by Moscow for restructuring the ailing steel plant IISCO at Burnpur in West Bengal and 2,000 MW Koodamkulam nuclear plant in Tamil Nadu plant being set up with Russian assistance.

Expressing alarm over the fall in bilateral trade this year, Finance Minister Yashwant Sinha and Klabenov, who are co-chairmen of the commission, said that while giving strength to traditional areas of trade, the two sides have agreed to diversify into new areas like import of rough diamonds from Russia and export of computers from India.

Sinha said Russia has agreed to have one time clearance for Indian pharmaceutical imports, which form the bulk of the trade between the two countries. It will be replace the old system of batch by batch inspection.

PTI