India to invest $20 billion to set up refinery in Iran

New Delhi: India has proposed to invest $20 billion in Iran to set up petrochemical and fertiliser plants among others as the Islamic nation comes out of Western sanctions.

This was proposed by petroleum minister Dharmendra Pradhan who is on a visit to Iran from April 9-10. It was the first visit of an Indian minister to Iran after sanctions were lifted this January.

During his meeting with Iranian officials, he conveyed 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, said a statement issued by the petroleum ministry on Sunday.

“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 competitive price and on a long-term basis for the life of the joint venture projects that Indian companies are interested in setting up,” said the ministry.

Mr Pradhan said that competitive gas pricing was crucial in making the projects attractive for the prospective investors. He also expressed India’s int-erest in setting up a LNG plant and a gas cracker in the Chabahar port.

Mr Pradhan conveyed to the Iranian side that both countries must expand the basket of oil and gas trade. He expressed India’s interest in importing LPG from Iran and said that companies from both sides could discuss on setting up an extraction plant in Chabahar.