 "India proposes to invest $ 20 bn in petrochemical & fertiliser sectors in Iran")
India has made a proposal of $ 20 billion investment in Iran in petrochemical & fertiliser sectors to broaden its engagement with the world’s second largest gas producer. The suggestion was made by the Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas, during his recent visit to Iran.
Pradhan conveyed to the Iranian side that Indian companies could invest upto $ 20 billion and were interested in setting up petrochemical and fertiliser plants, including in the Chabahar SEZ, either through joint venture between Indian and Iranian public sector companies or with private sector partners. In this regard, he requested Iran to allocate appropriate and adequate land in the SEZ.
Minister also requested the Iranian side for favourable treatment in the pricing of gas for India and also supply of rich gas at competitive price and on long term basis for the life of the joint venture projects that Indian companies are interested in setting up. Competitive gas pricing was crucial in making the projects attractive for the prospective investors. Pradhan also expressed India’s interest in setting up a LNG plant and a gas cracker in the Chabahar port.
Indian government aims to expand the basket of oil and gas trade from Iran. India has expressed its interest in importing LPG from Iran and is looking for companies from both sides to set up an extraction plant in Chabahar, if required. “Both sides agreed to continue examining various means of evacuation of gas such as LNG, including through the proposed Iran-Pakistan-India pipeline,” said the Ministry in a press release on April 11, 2016.
During the meetings, both sides noted that India-Iran bilateral relations have withstood the tests of time. Pradhan expressed that the lifting of sanction was an important milestone in Iranian history and represented a significant success for patient diplomacy and signalled a new chapter of peace and prosperity for Iran. It has opened up opportunities in the bilateral relations of India and Iran for new initiatives in the spheres of energy, investments and regional connectivity.
Both sides also discussed the developments regarding Farzab-B gas fields and expressed confidence on concluding an agreement at the earliest. While discussing the issue relating to payment of dues by Indian refineries to Iran towards purchase of crude oil, Pradhan conveyed that India was committed towards making payments as and when banking channels, acceptable to both sides, were available.
Pradhan conveyed to the Iranian side that Indian companies could invest upto $ 20 billion and were interested in setting up petrochemical and fertiliser plants, including in the Chabahar SEZ, either through joint venture between Indian and Iranian public sector companies or with private sector partners. In this regard, he requested Iran to allocate appropriate and adequate land in the SEZ.
Minister also requested the Iranian side for favourable treatment in the pricing of gas for India and also supply of rich gas at competitive price and on long term basis for the life of the joint venture projects that Indian companies are interested in setting up. Competitive gas pricing was crucial in making the projects attractive for the prospective investors. Pradhan also expressed India’s interest in setting up a LNG plant and a gas cracker in the Chabahar port.
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During the meetings, both sides noted that India-Iran bilateral relations have withstood the tests of time. Pradhan expressed that the lifting of sanction was an important milestone in Iranian history and represented a significant success for patient diplomacy and signalled a new chapter of peace and prosperity for Iran. It has opened up opportunities in the bilateral relations of India and Iran for new initiatives in the spheres of energy, investments and regional connectivity.
Both sides also discussed the developments regarding Farzab-B gas fields and expressed confidence on concluding an agreement at the earliest. While discussing the issue relating to payment of dues by Indian refineries to Iran towards purchase of crude oil, Pradhan conveyed that India was committed towards making payments as and when banking channels, acceptable to both sides, were available.