 "Prime Minister Narendra Modi and Saudi Arabia's Crown Princeand Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud in New Delhi, on Monday.PTI Photo")
India and Saudi Arabia have agreed to create a joint monitoring committee to review the progress of the under-construction West Coast Refinery and a joint task force to identify and channel the $50 billion in investments promised by the Kingdom in 2019.
Prime Minister Narendra Modi had a bilateral meeting with Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman Al Saud (colloquially known by his initials MBS) on Monday, during his second state visit to India. Both leaders also held the first meeting of the India-Saudi Arabia Strategic Partnership Council at Hyderabad House.
Both sides also identified critical minerals, space, semiconductors, and financial technology as key new areas of cooperation.
Energy partnership
Both sides have decided to diversify their current hydrocarbon relationship into a comprehensive energy partnership.
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A memorandum of understanding signed by the energy ministries of both countries calls for cooperation in renewable energy, energy efficiency, hydrogen, electricity, and a potential grid interconnection between the nations. It also encourages bilateral investment in these areas.
A separate agreement on grid connectivity is close to being finalised, said Sayeed, without giving further details.
Sources said both nations have committed to extending their full support to the stalled West Coast Refinery, following Saudi insistence.
First announced in 2015, the $44 billion project had targeted an unprecedented refinery capacity of 60 million tonnes per annum. However, dithering over the issue between the previous Shiv Sena-controlled Maharashtra government and the Bharatiya Janata Party-led Centre had held up the mega project.
In 2018, Saudi Aramco and the United Arab Emirates’ (UAE’s) Abu Dhabi National Oil Company signed a framework agreement to jointly develop the Ratnagiri Refinery and Petrochemicals project. Saudi Arabia has already earmarked funds to the tune of $50 billion, according to Ausaf Sayeed, secretary (consular, passport and Visa, and overseas Indian affairs) at the Ministry of External Affairs, during a press briefing.
Both sides have agreed to establish a joint task force to help identify and channel the $100 billion worth of investments committed by MBS in February 2019.
“Half of this was for the refinery. To ensure progress on refinery projects aligns with the laid-out plans, we have established a monitoring committee,” said Sayeed.
Modi has suggested potential areas of investment such as tourism, waterways, expansion of rail and freight corridors, ports, hydrogen, gas grids, and optical fibre.
On Saturday, India, the US, Saudi Arabia, and the European Union launched the mega India-Middle East-Europe shipping and rail connectivity corridor.
Trade deal discussed
Both sides have also agreed to expedite negotiations on the India-Gulf Cooperation Council (GCC).
The GCC consists of the six oil-rich economies of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
Initial talks on a trade pact fizzled out in 2008 after the bloc decided to disengage from all negotiations. In February 2022, India revived negotiations once more.
Trade in local currency was also discussed, given that India is the second-largest trading partner of Saudi Arabia, while the Kingdom is India's fourth-largest partner, according to Sayeed.
In a bid to secure stable supply lines for food, the Saudi side is also keen on developing food parks in India. Last year, the UAE announced $2 billion for developing the same in India.
India has suggested establishing a joint working group on education and skill development, and talks are underway to finalise a visa waiver agreement for diplomatic passports.
