27.9.15

India Iran economic cooperation

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India says it is ready to invest more than $15.2 billion to develop projects in Iran.
India says it is ready to invest more than $15.2 billion to develop projects in Iran.
 
Presstv.com
 India says it is ready to invest more than $15.2 billion to develop projects in Iran including taking up full-scale development of Chabahar Port if Tehran offers better terms including cheaper gas.
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"We are ready to make a huge investment in Iran and this is mainly linked to gas pricing offered by Iran ... Gas price is a crucial issue," India’s Shipping Minister Nitin Gadkari told a news conference, as reported by Reuters.
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Iran’s President Hassan Rouhani in July offered India a greater role in infrastructure projects including the overall development of Chabahar port.
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India hopes to take a decision on Iran's latest offer by early October after obtaining reports from other ministries including petroleum, chemical and fertilizer, and steel by Monday, Shipping Secretary Rajive Kumar said.
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The port of Chabahar in southeast Iran is central to India's efforts to circumvent arch-rival Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests.
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The port can also serve as a gateway to the resource-rich countries of Central Asia.
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In May, Gadkari and his Iranian counterpart, Abbas Ahmad Akhoundi, signed an $85 million deal for India to lease two existing berths at the port and use them as multi-purpose cargo terminals.
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With the easing of sanctions New Delhi is hoping for a greater and stronger role in Iran's development by taking up projects including building urea and petrochemical projects using gas produced in the OPEC-member nation.
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India is seeking gas at $1.50 per million British thermal units (mmBtu) compared to $2.95 offered by Iran for building a urea plant there, Gadkari said.
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He said building a plant in Iran and importing urea from there to India will help save a part of the 800 billion rupees ($12.13 billion) in subsidies and halve the prices for farmers.
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"If the gas price is reasonable then all departments in India can together take up projects in the special economic zone there and investment will be more than 1 trillion rupees," he said.