UAE offered to invest $1.8 bn in Indian PSUs

The Dollar Business Bureau

Calling for greater economic and strategic cooperation, India offered investment opportunities worth $1.5-1.8 billion in projects of Public Sector Units (PSUs) to the investors of United Arab Emirates (UAE).

“Opportunities include a 44 per cent stake in ONGC Petro Additions for $700 million, a 24 per cent stake in Bharat Oman Refinery in Madhya Pradesh for $200 million and investment opportunity between $530 million to $850 million in a petrochemical project of HPCL and GAIL India in Andhra Pradesh,” Petroleum and Natural Gas Minister Dharmendra Pradhan said while addressing the UAE investors during his visit to Dubai.

Indian Government has announced new Hydrocarbon Exploration Licensing Policy (HELP) to bring in more investments into the country’s exploration and production activity of hydrocarbons. The new policy would simplify the process of licencing to exploration by offering a uniform licence for all fuels such as natural gas, crude oil or shale, the minister informed. He also elaborated on the fiscal incentives as part of the HELP.

“In the last half century, India-UAE trade has grown tremendously to reach $60 billion per annum currently. UAE is the third largest trading partner of our country since 2014-15. India needs to transform its buyer-seller relationship with UAE in the energy sector into a genuine energy partnership,” said Pradhan.

He further said, "The Prime Minister's visit to the UAE last year, his visit to Saudi Arabia earlier this month and the visits of Abu Dhabi Crown Prince and Qatar Crown Prince have added another chapter in the age-old trade relations between India and the Gulf region. The main idea behind my visit to the UAE was to maintain the momentum built by the bilateral exchanges and to enhance cooperation in the energy sector, especially in areas such as strategic reserve."

Pradhan also visited Iran and had meetings with Minister of Petroleum Bijan Namdar Zanganeh, Senior Advisor to the President of Iran on Free Trade Zones Akbar Torkan and Governor of Iranian Central Bank Dr Valliolah Seif. Both countries discussed the developments regarding Farzab-B gas fields and expressed confidence on concluding an agreement at the earliest. Indian companies could invest up to $20 billion and were interested in setting up petrochemical and fertilizer plants. He requested Iran to allocate adequate land in Chabahar SEZ.

"Iran says it will not keep this gas as the country is in surplus. So India will take this to the world market or take it to India. We will look at all the options with an open mind. Whether we move this by converting into LNG or via pipeline, we will do whatever is cost-effective and feasible considering all circumstances," he added.