| Date: |
06-11-2014 |
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India can get Iran gas at $2.85 if it builds a fertiliser unit, says Nitin Gadkari |
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NEW DELHI: Iran has promised that it will supply natural gas at $2.85 per unit if India builds a fertiliser plant in the Gulf country, Road Transport & Highways, Shipping and Rural Development Minister Nitin Gadkari said on Wednesday.
India, which plans to develop Iran's Chabahar Port, could build a fertiliser plant there and import urea, which will be 50% cheaper than its domestic output, Gadkari said at a conference on bio-diesel in Delhi.Last month, the Cabinet had cleared a proposal to form a joint venture company that would develop the Chahbahar port. The decision was taken after the West softened economic sanctions against Iran.
Gadkari said India plans to develop the port in about 18 months, which would be used to import crude oil and urea. The port, which is located in the southeast Iran, is strategic as it would help India to bypass Pakistan while transporting goods from the Gulf country through Afghanistan.The two countries will sign an agreement for development of the port soon. India may get lease of two berths at Chabahar for 10 years. The proposed joint venture would develop a container and multi-purpose cargo terminal.Iran's Chahbahar port is located in the Sistan-Baluchistan province on its south-eastern coast. It lies outside he Persian Gulf and is easily accessed from India's west coast.
India Pays Another $500 Million
India on Wednesday paid Iran $500 million to clear a part of its past dues for crude oil it buys from the Persian Gulf nation.
The payment made was in addition to $400 million India paid on October 21, industry sources said. Mangalore Refinery and Petrochemicals Ltd (MRPL) paid about $217 million and almost an equal amount was paid by private sector Essar Oil.
The remaining amount was mostly paid by Indian Oil Corp (IOC).The $900 million payment in two weeks is on top of $1.65 billion the refiners had paid in June/July. Cumulatively, refiners owe about USD 6 billion to Iran. Sources said on October 21, MRPL had paid about $183 million, Essar Oil $172 million, IOC $ 41 million and Hindustan Petroleum Corp Ltd (HPCL) $4 million.
The United States and five other world powers had in July granted Iran access to $2.8 billion of its funds held in foreign banks. This was in addition to $4.2 billion Iran had received between January and July.Of the $2.8 billion, $900 million was to come from India, sources said.
Source : economictimes.indiatimes.com
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