In the need for obtaining cheap and affordable natural gas, India is being deciding upon investing about $20 billion in the newer side of petrochemical, fertilizer and Liquefied Natural Gas (LNG) in Iran. The main intention for this investment is to bring those things to India at an affordable rates and at an internationally competitive prices.
Oil minister Dharmendra Pradhan in Iran along with his delegation which included state-owned and also the private sector companies for seeking the greater investments and event the trade opportunities and also held the discussions over his counterpart Bijan Namdar Zanganeh, Akbar Torkan who is a senior adviser to the president of the Iran and also the Iran’s central bank governor Valliolah Seif.
Reverse SEZ: Plan for better India
The investment which is being proposed is a part of the New-Delhi refers to as ‘reverse-SEZ’. The main plan is setting up the downstream industries for the trade partners with the energy sources. The main idea is for securing these commodities at quite competitive prices globally without any kind of disruption.
According to one of the statement, “Pradhan conveyed to the Iranian side that Indian companies could invest as much as $20 billion and were interested in setting up petrochemical and fertilizer plants, including in the Chabahar SEZ, either through joint ventures between Indian and Iranian public sector companies or with private sector partners.” Pradhan has also requested for the allocation of the adequate land in the SEZ and also supplying the gas at a quite favourable and competitive prices over a long term basis for the projects.
Crude Oil supplies: Statistics
New Delhi is also been keen in setting up the gas cracker unit and also the LPG extraction unit in Chabahar. There have been discussions over both the sides over transporting the gas to India from Iran via proposed Iran-Pakistan-India pipeline. Tehran which was second largest crude oil supplier of India till 2010-11 and has lost his share due to the imposed sanctions from the US and the European Union wants to regain its crude oil supplies to India. Country is been importing around 12 million tons of oil from the Iran a year. India has imported a total of 184 million tons of oil in the period of April-February of 2015-16.
Iran is being considered as the fifth largest supplier of the oil to India. Other top suppliers includes Saudi Arabia, Iraq, Nigeria and also Venezuela. Pradhan has discussed with the governor of the Central Bank of Iran over opening of the payment channels for the payment of the dues to the Tehran for the oil being imported during the lifting of the sanctions in January. India is being currently paying about 45 percent of the bill of import in rupees through UCO Bank. The remaining of them is to be paid in Euros which needs the establishment of the bank channel.