A high-level meeting is scheduled for Monday where Union Ministries, including Ministry of Shipping, Gas and Petroleum, Chemical and Fertiliser and Finance are expected to deliberate on the project plan and investments for the Chabahar port trust in Iran.
“The Ministries will discuss their reports with our (Shipping) Secretary (Rajive Kumar) on projects they are planning in Iran. Based on their discussions, a final document will be readied for further deliberations with the Prime Minister’s Office,” said an official from the Ministry of Shipping.
“Following which the Minister (for Road Transport, Highways and Shipping)Nitin Gadkari is expected to travel to Iran with proposals to make big ticket investments that could be worth Rs1 lakh crore towards the projects. He will also use the opportunity to negotiate on gas prices,” he said.
The high-level visit to Iran will take place amid negotiations between the two countries on gas price for a urea plant to be set up in Iran.
“Iran is offering gas to India at USD 2.95 per million British thermal unit to set up urea plant at the Chabahar port in Iran. India is negotiating the gas price and has demanded it at USD 1.5 per mmBtu rate,” said the official.
With the US and other western powers easing sanctions against Iran, India has been in talks with Tehran to set up a gas-based urea manufacturing plant at the Chabahar port, besides developing a gas discovery ONGC had made.
Projects pertaining to iron ore, steel, highways and railways are also in the pipeline.
“The total investment in the projects could be more than Rs1,00,000 crore and will depend on negotiations on oil pricing. The Ministries will deliberate on the profitability and project viability,” said the official.
During his recent visit to India on August 14, Iranian Foreign Minister Mohammad Javad Zarif had called on Gadkari to ask him to expedite decisions on the Chabahar port projects.
The Minister plans to go with comprehensive investment plans, which include projects from other Ministries.
India has already pledged to invest about USD 85 million in developing the strategic port off Iran’s south eastern coast, which would provide it a sea-land access route to Afghanistan, bypassing Pakistan.
Meanwhile, Ministries of Chemical & Fertiliser and Petroleum are working on the proposed 1.3 million tonnes per annum plant.
Gadkari had visited Tehran in May, and both the nations had inked a pact to develop the Chabahar port. later both the countries agreed on building a special economic zone on the port to better trade ties.