India ready to invest $20 bn in Iran: Petroleum minister

India is willing to invest as much as $20 billion in setting up new petrochemicals, fertiliser and liquefied natural gas (LNG) facilities in Iran but requires land and cheaper natural gas for this, Petroleum Minister Dharmendra Pradhan has said.

The minister, who is currently in Iran along with key officials of his ministry and a delegation of industry representatives, discussed with his counterpart many outstanding issues related to the petroleum sector.

"Pradhan conveyed to the Iranian side that Indian companies could invest up to $20 billion and were interested in setting up petrochemical and fertiliser plants, including in the Chabahar special economic zone (SEZ), either through joint venture between Indian and Iranian public sector companies or with private sector partners," the oil ministry stated.

"In this regard, he requested Iran to allocate appropriate and adequate land in the SEZ. He also requested the Iranian side for favourable treatment in the pricing of gas for India and also supply of rich gas at a competitive price and on a long-term basis for the life of the joint venture projects that Indian companies are interested in setting up," the statement added.

Pradhan expressed India's interest in setting up an LNG plant and a gas cracker unit in the Chabahar port.

He said the country is keen to import liquefied petroleum gas from Iran. The two sides discussed the award of rights to develop Farzad-B gas fields to Indian firms as well as the pending payment by Indian refiners toward oil purchases from Iran.

The ministry said the two nations are trying to cement ties, following the lifting of some sanctions in January. Iran wants India to ramp up crude import from Iran, while India is seeking attractive terms of purchase to continue.