The agreement between the NP GLONASS and Eirene Systems Private Limited was signed on December 11, 2014. Photo: Alexander Gurko (3rd right). Source: Alessandro Belli
What is the bottom line of the agreement signed between the NP GLONASS and Eirene Systems Private Limited?
We are uniting the efforts with our Indian partners to develop, produce and implement joint solutions in the field of navigation, using Russian technology GLONASS and India's own navigation system IRNSS. Applying these technologies can be useful for India in various fields related to road safety, management of different kinds of transportation, including passenger transport.
We propose to use the Russian experience in the implementation of the project ERA-GLONASS - an emergency response system in case of road accidents. Next year this system will be introduced in Russia and it is expected to save four thousand lives a year by speeding up the response during emergencies.
What equipment exactly is in question for joint development and production?
We have been moving in this direction for a long time. The idea is to develop navigation receivers GLONASS/ GPS/ IRNSS for the Russian and Indian market as well as the third countries’ markets. Our tasks include the joint development of transport management systems for the Indian market and the introduction of systems based on these technologies.
Production will be carried out on existing facilities or the new facilities will be created?
We are negotiating with various companies and will take an appropriate decision in the first quarter of next year. In the first place, we are talking about development. This is the first step.
India has no projects of its own such as ERA-GLONASS that would be introduced in the whole country, or even several states. How long it may take to introduce such a system?
In Russia, the creation of this system was approved in 2009. Its implementation took four years. In India, we may be talking about the same time frame. Four or five years. Much will depend on the states where it will be decided to be implemented. Across India it will, of course, take longer. On average, it takes about a year to develop the system and from two to three years - to deploy it.
Have any specific agreements related to this matter been reached yet?
In Russia, we are currently at the stage of approval of the shareholders' agreement to create a joint company. All final agreements should be expected in the first quarter of next year. According to the instructions of the President of Russia Vladimir Putin before the end of this year in Russia GLONASS Joint Stock Company will be created, which will become the key member of the projects in India.
What amount of investment is considered for this project?
According to our forecasts, the development of the joint venture requires the investment of roughly 100 million dollars. Within three or four years, we plan to reach the revenue of 200-300 million dollars a year.
Will the investments will be equal on each side?
The Shareholders' Agreement is still under discussion.
To what other countries do you propose to launch ERA-GLONASS project?
Negotiations are currently underway with several North African countries, including Egypt. We are at the stage of active negotiations with the United Arab Emirates. Among other countries are Bangladesh, Myanmar, Nepal, Vietnam, Indonesia. With some of the above countries negotiations are already underway.
India may become a platform for the deployment of the project in the neighboring countries of South and Southeast Asia.
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