THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE REPUBLIC OF INDIA,
DESIRING to strengthen the existing cordial relations between the two countries,
HAVE AGREED as follows:
Article 1
Purpose
Both Governments shall co-operate in a Program in support of the developmental needs of India while promoting mutual economic links.
Article 2
Activities of the program of development co-operation
(1) The Program shall be directed to assisting those sectors of the economy of India to which the Government of the Republic of India accords greatest priority and in which the Government of Australia has expertise and comparative advantage, in particular:
(a) Mining/energy (coal and power)
(b) Telecommunications
(c) Railways
(d) Food technology/processing.
(2) The Program undertaken by the Government of Australia pursuant to this Agreement shall be in support of specific projects and related activities undertaken within such sectors.
(3) The Program may include the following forms of assistance:
(a) the sending of missions to India to study and analyze opportunities for Australian assistance;
(b) the granting of scholarships to nationals of India for studies in Australia, India or a third country;
(c) the assignment of Australian experts, advisers and other specialists to India in connection with project activities;
(d) the provision of equipment, materials, goods and services required for the successful execution of development projects in India;
(e) any other form of assistance, reportable as Official Development Assistance (ODA) under the OECD Development Assistance Committee (DAC) guidelines as may be determined by the two Governments.
Article 3
Definitions
In this Agreement:
(a) "Australian personnel" means Australian nationals or permanent residents or other persons who are not nationals or permanent residents of India who are working in India on an activity under this Agreement and whose salaries or other costs are funded from the contribution of the Government of Australia to the activity;
(b) "dependant" means the spouse, including the de facto spouse, and dependant minor children of a member of the Australian personnel or any other person recognised by the two Governments as a dependant of a member of the Australian personnel;
(c) "project" means a self-contained activity based on a mutually approved design and involving the provision of Australian expertise and project supplies;
(d) "project supplies" means equipment, material, and other goods supplied for the execution of development activities under this Agreement, the cost of which is funded from the contribution of the Government of Australia to the activity;
(e) "intellectual property" shall include the rights relating to:
(i) literary, artistic and scientific works and subject matter (including integrated circuit layouts), usually referred to as copyright;
(ii) inventions in all fields of human endeavour, usually referred to as patents;
(iii) scientific discoveries;
(iv) industrial designs;
(v) trademarks, service marks and commercial names and designations (whether registered or not);
(vi) protection against unfair competition; and
(vii) all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields including any rights in intellectual activity arising solely or partly by the restraint of breach of confidence;
(f) "personal and household effects" means equipment and other goods imported by members of the Australian personnel for the personal use of Australian personnel or their dependants; and
(g) "activity" means any discrete unit of development assistance which may include any one or more of the forms of assistance described in Article 2.
Article 4
Co-ordinating authorities
(1) The Australian International Development Assistance Bureau of the Department of Foreign Affairs and Trade shall be the Australian Co-ordinating Authority. The Department of Economic Affairs of the Ministry of Finance shall be the Indian Co-ordinating Authority.
(2) Subject to the overall responsibility of the Government of the Republic of India for implementation and co-ordination of activities under this Agreement, the two Co-ordinating Authorities shall be responsible for the planning and co-
ordination of the Program which function shall include but not be limited to:
(a) establishing priorities under the Program;
(b) choosing activities for implementation under the Program;
(c) reviewing and reporting on progress in the Program to the two Governments; and
(d) recommending to the two Governments any appropriate changes to the Program including budget and future development.
Article 5
Sharing of costs
(1) The Government of Australia shall meet costs incurred outside India relating to training, materials, services and equipment as appropriate for each activity, together with payment of salaries, allowances, travel between Australia and the project areas, accommodation and living expenses of all Australian project personnel. These costs incurred outside India shall be on a grant basis. The meeting of other costs shall be at the discretion of the Government of Australia.
(2) The Government of the Republic of India shall meet all costs incurred in India by the Government of the Republic of India in support of each activity other than those costs which the Government of Australia may consent to meet. Such costs shall normally include salaries and allowances of Indian personnel, materials, services and equipment as appropriate supplied from within India for the activity.
Article 6
Financial commitments
(1) The provision by the Government of Australia of the Australian contribution to the Program and to the individual activities within the Program is conditional upon annual Australian Parliamentary approval of appropriations.
(2) Program or activity financial disbursement estimates shall be indicative planning figures and not financial commitments.
Article 7
Specific activities
(1) In order to give effect to the Program the two Co-ordinating Authorities may enter into arrangements in writing for the purpose of carrying out specific activities.
(2) Such arrangements shall make particular reference to this Agreement and the terms of this Agreement shall, unless otherwise stated, apply to such arrangements. Wherever possible, such arrangements shall set out:
(a) the name and duration of the activity;
(b) a description and statement of objectives of the activity;
(c) the nominated implementing agencies in both countries;
(d) details of the contributions to the activity by the two Governments including:
(i) financial contributions;
(ii) materials, services and equipment to be supplied;
(iii) the numbers and areas of expertise of Australian and Indian personnel to be engaged; and
(iv) estimated annual budgets;
(e) timetable for implementation; and
(f) evaluation and review arrangements.
(2) The two Co-ordinating Authorities may amend and supplement the arrangements for each activity.
Article 8
Project co-ordinating committees
(1) In respect of a project arranged under the Program a Joint Project Co-ordinating Committee shall normally be established to:
(a) review and report on progress to the two Governments;
(b) recommend to the two Governments any appropriate changes in the project including budget and future development; and
(c) undertake such other functions as may be set out in arrangements between the Co-ordinating Authorities.
(2) The Chairman of each Project Co-ordinating Committee shall be appointed by the Indian Co-ordinating Authority. The Committee shall include members appointed by the Indian Co-ordinating Authority and the Australian Co-ordinating Authority.
(3) Unless mutually arranged otherwise between the two Co-ordinating Authorities, Project Co-ordinating Committees shall meet at least twice a year at mutually acceptable times and places.
Article 9
Evaluation
An evaluation of progress of each project may be made at times arranged between the two Governments. Such an evaluation would be undertaken by a joint review team appointed by the two Governments.
Article 10
Personnel
In order to facilitate the engagement of Australian personnel required to implement the Australian contribution the Government of the Republic of India shall in respect to such personnel:
(1) grant exemption from income taxes on salaries and allowances;
(2) grant exemption upon import or export from customs duties, other duties, taxes, levies and other charges of similar nature on personal and household effects of themselves and their dependants declared at their first entry into India;
(3) assist in clearance through Customs and other import or export controls of the goods mentioned in sub-paragraph (2);
(4) grant all rights and entitlements accorded to the aid personnel of any other donor country or organisation; and
(5) expedite the issue of all documentation required for the entry and exit of Australian personnel and their dependants to and from India and the performance of the work of Australian personnel.
Article 11
Motor vehicles for personal use
(1) Australian personnel assigned to work in India for more than twelve months on an activity under this Agreement may import within the first six months of arrival in India, free from customs duties, other duties, taxes, levies and other charges of a similar nature, a vehicle that conforms to Indian motor vehicle regulations for personal use and use by dependants and may re-export that vehicle free from the above charges at the conclusion of the assignment.
(2) If the vehicle is sold or otherwise disposed of to non-
exempt entities or personnel, it shall be subject to the normal duties and other charges at the rate in force on the date that the exemption was given and on its entered value at the time of disposal.
Article 12
Australian project supplies
(1) In respect of Australian project supplies the Government of the Republic of India shall
(a) be responsible for all formalities of clearance including payment of import duties and other taxes in accordance with the relevant provisions as stipulated in the laws of taxes and duties of India;
(b) facilitate movement of such supplies by providing appropriate customs and wharfage facilities in the port closest to the site of the project; and
(c) provide expeditious transport to the site of the project.
(2) Australian project supplies shall be available only for the purposes of the project and shall not be withdrawn from that use without the consent of the Australian Co-ordinating Authority.
Article 13
Intellectual property
(1) Each Government shall not, without the written approval of the other Government, make any use of or do anything comprised within the intellectual property arising from the implementation of this Agreement or do anything whereby such intellectual property rights could be prejudiced.
(2) The two Governments shall discuss and jointly determine:
(a) the equitable allocation of ownership of all intellectual property arising directly or indirectly from collaborative projects under this Agreement;
(b) the equitable licensing of such intellectual property; and
(c) where it is within their power, the equitable licensing of such other intellectual property as is necessary for the utilisation of the results of the project.
(3) In fulfilling their obligations under paragraph 2 of this Article, the two Governments shall have regard to relevant considerations, including:
(a) the intellectual contributions of each country;
(b) the financial contributions of each country;
(c) the contribution of intellectual property, materials, research effort and preparatory work of each country;
(d) the facilities provided by each country; and
(e) such other considerations as the Governments may mutually determine.
Article 14
Facilitation of activities
The Government of the Republic of India shall use its best endeavours to facilitate the implementation of activities.
Article 15
Claims
Recognising that activities under this Agreement are being undertaken for the benefit of the people of India, the Government of the Republic of India shall bear all risks associated with operations carried out in pursuance of this Agreement and shall indemnify the Government of Australia in respect of the amount of any claim including legal costs arising from such claim that is brought by third parties against the Government of Australia, its servants or Australian personnel (whether such claim is brought in a court or tribunal in Australia or India or a third country) and shall hold harmless the Government of Australia and Australian personnel in case of any claims resulting from operations under the Agreement.
Article 16
Security
The Government of the Republic of India shall arrange for protective services necessary to ensure the safety of:
(i) the person and property of the Australian personnel and their dependants; and
(ii) Australian project supplies.
Article 17
Consultations
(1) There shall be an annual meeting of senior officials from the two Governments to consider:
(a) the direction, composition and contribution of Australian development co-operation to the development of India and to the promotion of mutual economic links;
(b) the effectiveness of the administration of development co-operation; and
(c) future development co-operation between the two countries.
(2) The two co-ordinating authorities of both countries may attend the meeting.
(3) The two Governments shall consult together upon request of either Government regarding any matter relating to the terms of the Agreement and shall endeavour jointly in a spirit of co-operation and mutual trust to resolve any difficulties or misunderstandings which may arise.
Article 18
Amendments
The Agreement may be amended and supplemented by agreement in writing between the two Governments.
Article 19
Entry into force and duration
(1) This Agreement shall enter into force on 1 July 1990, and shall remain in force for a period of three years from that date.
(2) If neither Government gives written notice to the other at least six months prior to the expiration of this period of its desire to terminate the Agreement, the Agreement shall be automatically extended for a period of one year and shall thereafter be renewable in the same manner.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.
DONE in duplicate at Canberra on this 25th day of October 1990.
FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
AUSTRALIA: THE REPUBLIC OF INDIA:
[Signed:] [Signed:]
C TERRELL D SUBBA RAO