BackIndia to seeks better business ties with Iran, UAE
Oil minister Dharmendra Pradhan's four-day trip to Iran and the UAE starting 9 April will focus on strengthening India's energy security
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New Delhi: Oil minister Dharmendra Pradhan will explore opportunities for Indian state-run companies to set up fertilizer and petrochemical plants in Iran’s Chabahar Free Trade Zone and seek to conclude a deal with the Abu Dhabi National Oil Co. (ADNOC) for building up India’s strategic petroleum reserve.
Pradhan starts a four-day trip to Iran and the United Arab Emirates (UAE) on 9 April, an oil ministry statement said.
He will meet senior functionaries in the Iranian administration and governor of the Central Bank of Iran. India is keen to source more crude oil from Iran, which is geographically closer to India than suppliers in Africa.
Working out a smooth mechanism for payment of oil imports is on his agenda. Currently, India pays 45% of the import bill in rupees through UCO Bank. The remaining is to be paid in euros, for which a banking channel is to be established.
“Pradhan’s visit envisages engaging with the Iranian political leadership to work with them, particularly in the hydrocarbon, petrochemicals and fertilizer sectors, for mutual benefit, including strengthening of India’s energy security," the statement said.
During his two-day visit to UAE starting 11 April, the minister will meet minister for energy Suhail Mohammed Al Mazrouei, the chief executive of ADNOC, and the top brass of the Abu Dhabi Investment Authority.
ADNOC is in talks with the Indian Strategic Petroleum Reserve Ltd for crude oil supply to the 1.5 million tonne strategic reserve at Mangalore.
Also on Pradhan’s agenda is the pursuit of the so-called ‘reverse special economic zone’ concept. It proposes the idea of India setting up manufacturing facilities in duty free or special economic enclaves in other countries where raw materials and sources of fuel are easily available so that output of those facilities could be exported to India at globally competitive prices.
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